Average fixed costs rise continuously as the quantity of output rises.

Name: Average fixed costs rise continuously as the quantity of output rises.
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Quizplus · Accepted Answer

Average fixed costs are constant in the short run, as fixed costs do not change with the level of output. Therefore, as output is increased, fixed costs are spread over a larger quantity of output, causing average fixed costs to fall.

Average Fixed Costs Rise Continuously as the Quantity of Output