The average fixed costs:
A) is constant
B) increases with output
C) decreases with output
D) decreases when marginal cost increases

Name: The average fixed costs: A) is constant B) increases with output C) decreases with output D) decreases when marginal cost increases
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Question

Quizplus · Accepted Answer

Average fixed costs decrease with output because the total fixed costs are spread over a larger number of units, reducing the cost per unit.

The Average Fixed Costs