Average fixed cost a. increases as output increases. b. decreases as output increases. c....
Question:
Average fixed cost
a. increases as output increases.
b. decreases as output increases.
c. increases if marginal cost is increasing.
d. increases if marginal cost is greater than average fixed cost.
Total Fixed Cost:
In economics, the term total fixed cost is associated with the cost that a firm incurs while starting up their business operations. This cost is a time-variant, not an output variant.
Answer and Explanation: 1
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View this answer- The correct option is b. Decreases as output increases.
Mathematically, Average fixed cost is the ratio of total fixed cost and the units of output...
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Fixed Costs: Definition, Formula & Examples
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Chapter 3 / Lesson 14
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What is a fixed cost? Learn the fixed cost definition and how to calculate it using the fixed cost formula. Compare fixed vs. variable costs and see fixed costs examples in business.
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