Refer to Scenario 2. The average fixed cost of 2 units of output is:

Which of the following always decreases as output increases?

a. ATC b. MC c. AFC d. TC e. TVC

In the dollar-pound market, the equilibrium price of the pound will change

a. only when there is a shift of the demand curve for pounds b. only when there is a shift of the supply curve for pounds c. only when there are shifts of both the supply for pounds and demand for pounds curves d. whenever there is a shift of either the supply or demand curves for pounds e. whenever there is movement along either the supply or the demand for pounds curves