What shape is a firm's average fixed cost curve?
A) a curve that increases as output expands
B) a curve that declines as output expands
C) U-shaped
D) a vertical line

Name: What shape is a firm's average fixed cost curve? A) a curve that increases as output expands B) a curve that declines as output expands C) U-shaped D) a vertical line
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Question

Quizplus · Accepted Answer

Average fixed cost decreases as output expands because the total fixed cost is spread over an increasing number of units, leading to a decline in the cost per unit.

What Shape Is a Firm's Average Fixed Cost Curve