A firm's average fixed cost curve is:

Name: A firm's average fixed cost curve is:
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The average fixed cost curve declines as output expands because as output increases, fixed costs are spread over a larger quantity of output, resulting in lower average fixed costs. However, as output approaches a very large quantity, the average fixed cost curve approaches the X-axis because at that point the fixed costs become negligible relative to the large quantity of output.

A Firm's Average Fixed Cost Curve Is