Scenario 13-4
A firm experiences decreasing marginal product of labour with the addition of each worker regardless of the current output level.
-Refer to Scenario 13-4.How will average fixed cost behave

Question

Quizplus · Accepted Answer

Average fixed cost will always fall as output increases because fixed costs are spread over a larger number of units.

Scenario 13-4 a Firm Experiences Decreasing Marginal Product of Labour with the with the Addition