Average fixed costs: A. are perpetually decreasing as output increases, but at a decreasing rate. B....

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Average fixed costs: A. are perpetually decreasing as output increases, but at a decreasing rate. B....

Average fixed costs:

A. are perpetually decreasing as output increases, but at a decreasing rate.

B. are perpetually decreasing as output increases, and at an increasing rate.

C. are perpetually increasing as output increases, but at a decreasing rate.

D. are perpetually increasing as output increases, and at an increasing rate.

business economics

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Answer 1

Answer #1

answer A.)are perpetually decreasing as output increases, but at a decreasing rate

Average fixed cost decreases with additional production. The logic behind this relation is relatively simple. Because fixed cost is fixed and does not change with the quantity of output, a given cost is spread more thinly per unit as quantity increases

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Answer 2

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