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How Do We Calculate Average Fixed Cost and Why Does

question 114

Essay

How do we calculate average fixed cost and why does average fixed cost fall as output increases?


Definitions:

Effective

The degree to which something is successful in producing a desired or intended result.

Authority

The legal right or power to make decisions, give orders, or act on behalf of another person or entity.

Liable

Being legally responsible for an action or outcome; subject to legal obligation or liability.

Negligently

Acting with a lack of proper care or attention that a reasonable person would use in similar circumstances, often leading to harm or damages.

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