-Figure 7-9 shows three different cost curves,labeled A,B,and C,for a firm.Which of these curves is most likely to represent average fixed cost?
A)curve A
B)curve B
C)curve C
D)neither A,B,nor C
E)cannot be determined without more information

Question

-Figure 7-9 shows three different cost curves,labeled A,B,and C,for a firm.Which of these curves is most likely to represent average fixed cost?
A)curve A 
B)curve B 
C)curve C 
D)neither A,B,nor C 
E)cannot be determined without more information

Quizplus · Accepted Answer

Average fixed cost (AFC) typically decreases as output increases, resulting in a downward-sloping curve. Curve C is most likely to represent AFC as it would show this characteristic.

-Figure 7-9 Shows Three Different Cost Curves,labeled A,B,and C,for a Firm.Which