Home › Bihar Board Class 12 (Arts) › Economics › Producer Behaviour and Supply › As output rises, what happens to average fixed c…
As output rises, what happens to average fixed cost?
AIt rises steadily
BIt stays constant
CIt keeps decreasing
DIt rises and then falls
Answer & Solution
Correct answer: C. It keeps decreasing
AFC is TFC divided by output, and TFC is fixed, so AFC falls as output grows.
Related questions
A straight-line supply curve cuts the price axis at a positive value. What is its elasticiA straight-line supply curve passes through the origin. What is elasticity of supply at evWhat is the elasticity of supply when the supply curve is vertical?Price rises from Rs 10 to Rs 30 and quantity supplied rises from 200 to 1000. What is the Elasticity of supply is % change in quantity supplied divided by what?Price elasticity of supply measures the responsiveness of what to a change in price?If the number of firms in a market increases, what happens to market supply?At a price p, firm 1 supplies 30 units and firm 2 supplies 20 units. What is market supply