Figure 5.1
-Refer to Figure 5.1, which shows a family of average cost curves. The average fixed cost curve is represented by:
A)Curve 1.
B)Curve 2.
C)Curve 3.
D)The vertical sum of curve 1 and curve 2.

Question

Figure 5.1
-Refer to Figure 5.1, which shows a family of average cost curves. The average fixed cost curve is represented by:
A)Curve 1. 
B)Curve 2. 
C)Curve 3. 
D)The vertical sum of curve 1 and curve 2.

Quizplus · Accepted Answer

The average fixed cost (AFC) curve typically decreases as output increases, reflecting the spreading of fixed costs over more units. Curve 3 likely represents this behavior, as it would show a downward slope.

Figure 5.1 -Refer to Figure 5.1, Which Shows a Family of Average