A firm's average fixed cost
A)does not vary with output.
B)decreases as output rises.
C)is equal to average cost when average cost is minimized
D)causes marginal cost to rise as output rises.

Name: A firm's average fixed cost A)does not vary with output. B)decreases as output rises. C)is equal to average cost when average cost is minimized D)causes marginal cost to rise as output rises.
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Question

Quizplus · Accepted Answer

Average fixed cost decreases as output rises because fixed costs are spread over a larger number of units.

A Firm's Average Fixed Cost