As output increases, the slope of the curve showing the firm's average fixed cost is
A) first negative, then positive.
B) first positive, then negative.
C) always negative.
D) always positive.

Question

Quizplus · Accepted Answer

The average fixed cost (AFC) curve is always negative because fixed costs are spread over an increasing output, causing AFC to decrease as output increases.

As Output Increases, the Slope of the Curve Showing the Firm's