The total fixed cost of operating a lumberyard equals $12,000 this year.The average fixed cost of the lumberyard will not be affected by the quantity of lumber that is sold.

Name: The total fixed cost of operating a lumberyard equals $12,000 this year.The average fixed cost of the lumberyard will not be affected by the quantity of lumber that is sold.
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Quizplus · Accepted Answer

The average fixed cost decreases as the quantity of lumber sold increases because the total fixed cost is spread over more units.

The Total Fixed Cost of Operating a Lumberyard Equals $12,000