Asked by Trevia Knight on May 03, 2024
Verified
Describe the general shape of the average-fixed-cost curve.
Average-Fixed-Cost Curve
A graphical representation that shows the average fixed costs of production at different levels of output.
- Evaluate and portray the formation of cost curves, which includes total cost, average total cost, average fixed cost, average variable cost, and marginal cost.
Verified Answer
MW
Mahlen WaughMay 06, 2024
Final Answer :
AFC = FC/Q. Fixed cost is unchanged while output increases. Thus, AFC is always declining as output increases.
Learning Objectives
- Evaluate and portray the formation of cost curves, which includes total cost, average total cost, average fixed cost, average variable cost, and marginal cost.