Average fixed cost:
A)is intersected by marginal cost at its minimum point
B)may be found for any output by adding average variable cost and average cost
C)graphs as a U-shaped curve
D)declines so long as output increases
E)graphs as a hill-shaped curve

Question

Quizplus · Accepted Answer

Average fixed cost declines continuously as output increases because the total fixed cost is spread over a larger number of units.

Average Fixed Cost