Which of the Following Is True About Average Fixed Cost

question 15

Multiple Choice

Which of the following is true about average fixed cost?

• A) Average fixed cost has a U-shape, and marginal cost crosses average fixed cost at its minimum point.
• B) Average fixed cost does not vary as output increases.
• C) Average fixed cost is the difference between marginal cost and average total cost.
• D) Average fixed cost is total fixed cost divided by the quantity of output produced, and it declines steadily as output increases.

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