-Refer to the above figure. Curve (4) is the
A) total fixed cost curve.
B) marginal product curve.
C) average fixed cost curve.
D) average variable cost curve.

Question

-Refer to the above figure. Curve (4) is the
A) total fixed cost curve. 
B) marginal product curve. 
C) average fixed cost curve. 
D) average variable cost curve.

Quizplus · Accepted Answer

Curve (4) represents the average fixed cost curve, which continuously decreases as output increases because fixed costs are spread over a larger number of units, reducing the cost per unit.

-Refer to the Above Figure