One feature of the average fixed cost is that it
ECONOMICS
WAEC 2020
One feature of the average fixed cost is that it
- A. falls continuously but is never equal to zero.
- B. is U-shaped and intersects the Y-axis
- C. rises and falls faster than the marginal cost
- D. is always higher than the average variable cost
Correct Answer: A. falls continuously but is never equal to zero.
Explanation
The average cost curve keeps falling as the level of output rises. It remains positive, and never reaches a zero value, and never turns negative.
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