Average fixed cost
A)equals marginal cost when average total cost is at its minimum.
B)may be found for any output by adding average variable cost and average total cost.
C)graphs as a U-shaped curve.
D)declines continually as output increases.

Question

Quizplus · Accepted Answer

Average fixed cost declines as output increases because fixed costs are spread over more units of output, leading to a lower cost per unit.

Average Fixed Cost