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:

Alcohol

A chemical compound commonly found in beverages that can alter consciousness and have effects on the body.

Stimulant

A type of drug that increases the activity of the nervous system, resulting in increased alertness, attention, and energy.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or achieving restorative sleep, often leading to daytime sleepiness and functional impairment.

Temporary

Lasting for only a limited period of time; not permanent.