The average fixed cost curve
A) is parallel to the x-axis.
B) is the distance between the TC and TVC curves.
C) slopes downward as output increases.
D) increases as the cost of inputs rise.

Question

Quizplus · Accepted Answer

The average fixed cost (AFC) curve slopes downward as output increases because fixed costs are spread over a larger number of units, reducing the cost per unit.

The Average Fixed Cost Curve