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What Is the Shape of the Average Fixed Cost Curve

Question 103

Multiple Choice

What is the shape of the average fixed cost curve for a firm in the short run?


A) U-shaped.
B) A curve that constantly increases as output expands and eventually approaches infinity at high rates of output.
C) A vertical line.
D) A curve that declines as output expands and approaches the horizontal-axis when output is large.

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