Asked by Silvia Gopalakrishnan on Jun 05, 2024
Verified
Refer to Table 13-15. What is the shape of the average-fixed-cost curve?
Average-Fixed-Cost Curve
A graphical representation that shows how the average fixed costs of production decrease as the quantity of output increases, due to spreading fixed costs over a larger number of units.
- Dissect and illustrate the silhouette of cost curves, embracing total cost, average total cost, average fixed cost, average variable cost, and marginal cost.
Verified Answer
RB
Riley BruceJun 06, 2024
Final Answer :
AFC is always declining as output increases because the $5 is divided by larger and larger quantities of output.
Learning Objectives
- Dissect and illustrate the silhouette of cost curves, embracing total cost, average total cost, average fixed cost, average variable cost, and marginal cost.