One feature of the average fixed cost is that it

falls continuously but is never equal to zero.

is U-shaped and intersects the Y-axis

rises and falls faster than the marginal cost

is always higher than the average variable cost

Correct Option

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4 years ago

Answer should be A
Answer B is not for average fixed cost but for average total cost

4 years ago

Answer is A
AFC falls with level of output increasing because fixsd costs are constant

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