Which of the following does not decline as output increases?
A)Marginal cost
B)Average fixed cost
C)Average cost
D)Total fixed cost

Question

Quizplus · Accepted Answer

Total fixed cost does not decline with output because it remains unchanged regardless of the level of production. Marginal cost, average fixed cost, and average cost all typically decline as output increases, due to the spreading of fixed costs over a larger number of units produced.

Which of the Following Does Not Decline as Output Increases