As output increases, average fixed cost
A) always decreases.
B) increases, then decreases.
C) decreases, then increases.
D) remains constant.

Name: As output increases, average fixed cost A) always decreases. B) increases, then decreases. C) decreases, then increases. D) remains constant.
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Question

Quizplus · Accepted Answer

Average fixed cost always decreases as output increases because fixed costs are spread over a larger number of units.

As Output Increases, Average Fixed Cost