The Average Fixed Cost (AFC)curve

question 18

Multiple Choice

The average fixed cost (AFC) curve

• A)Is U-shaped as a result of diminishing returns.
• B)Declines as long as output increases.
• C)Is intersected at its minimum point by marginal cost.
• D)Intersects the marginal cost curve at its minimum point.

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Definitions:

Indemnity

A contractual obligation of one party to compensate the loss incurred by the other party due to the acts of the indemnifier or other specified events.

Requirement of Writing

The requirement of writing specifies that certain agreements or contracts must be in written form to be legally binding and enforceable.

Mental Incapacity

A condition where an individual lacks the ability to make decisions because of mental health issues or intellectual disabilities.

Executed Agreement

A contract that has been fully performed by all parties involved, with all terms satisfied and obligations met.