Figure 7-9
-Of the graphs in Figure 7-9, which represents average fixed cost?
A)1
B)2
C)3

Name: Figure 7-9 -Of the graphs in Figure 7-9, which represents average fixed cost? A)1 B)2 C)3
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Question

Figure 7-9 
-Of the graphs in Figure 7-9, which represents average fixed cost?
A)1 
B)2 
C)3

Quizplus · Accepted Answer

Average fixed cost remains constant as output increases because fixed costs do not change with output. Graph 1 shows a horizontal line, indicating that AFC is constant. The other graphs (2, 3, and 4) show curves for AFC, indicating that AFC changes as output changes.

Figure 7-9 -Of the Graphs in Figure 7-9, Which Represents Average Fixed