As production increases, average fixed cost begins to fall and then begins to rise again.

Name: As production increases, average fixed cost begins to fall and then begins to rise again.
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Question

Quizplus · Accepted Answer

Average fixed cost continuously decreases as production increases because the total fixed cost is spread over a larger number of units, and it does not rise again since the fixed cost does not change with the level of output.

As Production Increases, Average Fixed Cost Begins to Fall and Then