How can the average-fixed-cost curve be declining when fixed cost is constant?

Although fixed cost is unchanged as output increases, AFC = FC/Q. Thus, AFC is always declining as output increases.

Economics

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The government of a country must make a decision between spending money on a hospital or spending the amount on border security. What kind of decision is this?

a) guns or butter b) decision at the margin c) global trade-off d) production efficiency decision

Economics

Suppose that a tax is placed on a particular good. If the sellers end up bearing most of the tax burden, this indicates that the

a. demand is more inelastic than supply. b. supply is more inelastic than demand. c. government has required that buyers remit the tax payments. d. government has required that sellers remit the tax payments.

Economics