Average fixed costs
A) are the costs associated with producing an additional unit of output.
B) provide a per unit measure of costs.
C) fall as output rises.
D) reach their minimum at the output level where the average fixed cost curve is intersected by the marginal cost curve.

Question

Quizplus · Accepted Answer

Average fixed costs decrease as output increases because the total fixed costs are spread over a larger number of units, reducing the cost per unit.

Average Fixed Costs