Which of the following is true of average fixed costs in the long run?
A)Average fixed costs start increasing.
B)Average fixed costs are above average variable costs.
C)There are no fixed costs in the long run, so there are also no average fixed costs in the long run.
D)Average fixed costs intersect the marginal cost curve at its minimum point.

Question

Quizplus · Accepted Answer

In the long run, all costs are variable costs as the firm can adjust its inputs and output levels. Therefore, there are no fixed costs in the long run, and thus, no average fixed costs.

Which of the Following Is True of Average Fixed Costs