Average fixed costs of production
A)remain constant.
B)will rise at a fixed rate as more is produced.
C)graph as a U-shaped curve.
D)fall as long as output is increased.

Name: Average fixed costs of production A)remain constant. B)will rise at a fixed rate as more is produced. C)graph as a U-shaped curve. D)fall as long as output is increased.
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Question

Quizplus · Accepted Answer

Average fixed costs fall as output increases because the total fixed costs are spread over a larger number of units.

Average Fixed Costs of Production