Ask Question
BusinessBusiness
11 February, 17:45

Average fixed cost (AFC) A. rises as output rises. B. falls as output falls. C. is always fixed across all output ranges for the given production function. D. rises as output falls.

+3
Answers (1)
  1. 11 February, 20:26
    0
    D. rises as output falls.

    Explanation:

    Average fixed cost refers to the fixed cost per unit. Average fixed costs can, therefore, be described as the production's fixed costs divided by the output. Fixed costs are the expenses that remain constant in a period.

    Average fixed costs will decline as production increases. Fixed costs are constant; diving them with a large output means spreading them in many quantities. For example, if the fixed costs are $1000 and the output is 2000, the average fixed cost will be $0.5. If the production increases to 4000, then the average fixed cost will decrease to $0.25. A decline in production results in high average fixed costs.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Average fixed cost (AFC) A. rises as output rises. B. falls as output falls. C. is always fixed across all output ranges for the given ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
At the beginning of 20D, Braga Company had office supplies inventory of $800. During 20D, the company purchased office supplies amounting to $2,500 (paid for in cash and debited to office supplies inventory).
Answers (1)
Rachel manages security for a small bank and has a firewall at the gateway as well as one at each network segment. Each firewall logs all accepted and rejected traffic. Rachel checks each of these logs regularly.
Answers (1)
There are the four main legal structures for a business in the United States. Which two of these protect your personal liability?
Answers (1)
In which type of service does the cpa assemble the financial statements but provide no assurance to third parties?
Answers (1)
Most crude oil is delivered from terminals to refineries by
Answers (1)
New Questions in Business
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $118,500 and $125,600, respectively. During the year, actual overhead was $108,000 and actual direct labor cost was $115,800.
Answers (1)
Individuals who pay less of their own health care costs may have an incentive to use health care resources more frequently and to engage in riskier behaviors. The problem is known as: A. asymmetric information. B. adverse selection. C. moral hazard.
Answers (1)
The answer to the question "what really makes the difference between success and failure on a particular job, and according to whom?" determines:
Answers (1)
What type of promotion requires consumers to rely on some measure of random chance? A. Sweepstakes B. Coupons C. Rebates D. Premiums
Answers (1)
A property will provide $10,000 at the end of each year forever. if its value is $125,000, what must be the discount rate?
Answers (2)
Home » Business » Average fixed cost (AFC) A. rises as output rises. B. falls as output falls. C. is always fixed across all output ranges for the given production function. D. rises as output falls.
Sign Up Forgot Password?