Question 4 As production increases, average fixed costs always decline (if they are non-zero). O True...

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Question 4 As production increases, average fixed costs always decline (if they are non-zero). O True O False

business economics

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Answer 1

Answer #1

Average variable cost = TVC/Q

Average fixed cost= Total fixed cost / Quantity

total cost= Total variable cost + total fixed cost

Average fixed cost definitely will decrease with the increase in the output level. It remains positive.

Hence the given statement is true.

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Answer 2

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