-What is the relationship between the average fixed cost (AFC) curve and the marginal cost (MC) curve?
A)The MC curve intersects the AFC curve at its minimum point.
B)When the MC curve is above the AFC curve, AFC must be increasing.
C)Both a and b are true.
D)There is no relationship between the AFC curve and the MC curve..

Question

-What is the relationship between the average fixed cost (AFC) curve and the marginal cost (MC) curve?
A)The MC curve intersects the AFC curve at its minimum point. 
B)When the MC curve is above the AFC curve, AFC must be increasing. 
C)Both a and b are true. 
D)There is no relationship between the AFC curve and the MC curve..

Quizplus · Accepted Answer

The average fixed cost (AFC) curve and the marginal cost (MC) curve are unrelated because AFC is derived from fixed costs, which do not change with output, while MC is derived from variable costs, which do change with output.

-What Is the Relationship Between the Average Fixed Cost (AFC)