Which of the following cost curves always declines continuously as output increases?
A) ATC
B) AVC
C) AFC
D) MC
E) TC

Name: Which of the following cost curves always declines continuously as output increases? A) ATC B) AVC C) AFC D) MC E) TC
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Question

Quizplus · Accepted Answer

AFC, or Average Fixed Cost, continuously declines as output increases because the total fixed costs are spread over an increasing number of units, reducing the cost per unit.

Which of the Following Cost Curves Always Declines Continuously as Output