As output increases, average fixed costs
A) decrease.
B) initially decrease and then increase.
C) remain constant.
D) increase.

Name: As output increases, average fixed costs A) decrease. B) initially decrease and then increase. C) remain constant. D) increase.
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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.

As Output Increases, Average Fixed Costs