The average fixed cost curve

A) always declines with increased levels of output.
B) always rises with increased levels of output.
C) declines as long as it is above marginal cost.
D) declines as long as it is below marginal cost.

Average Fixed Cost Curve

A graphical representation showing how average fixed costs (costs that do not change with the level of output) decreases as production increases.

Output

The total amount of goods and services produced by an economy over a specific period.

Levels

Levels refer to the different positions or stages in a hierarchical structure or process, indicating varying degrees of magnitude, importance, or progress.