As a firm increases its output in the short run,average fixed cost
A)rises steadily
B)falls and then rises
C)falls steadily
D)rises and then falls
E)remains unchanged

Name: As a firm increases its output in the short run,average fixed cost A)rises steadily B)falls and then rises C)falls steadily D)rises and then falls E)remains unchanged
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Question

Quizplus · Accepted Answer

Average fixed cost falls steadily as output increases because the fixed costs are spread over a larger number of units.

As a Firm Increases Its Output in the Short Run,average