Final answer:
The average fixed cost curve is a downward sloping curve that approaches zero as the quantity of output increases. Spreading the overhead refers to reducing the average fixed cost per unit by increasing the quantity of output.
Step-by-step explanation:
The average fixed cost curve is a downward sloping curve that approaches zero as the quantity of output increases. This is because the fixed cost is spread over a greater number of units as production increases.
Spreading the overhead refers to the concept of reducing the average fixed cost per unit by increasing the quantity of output. As more units are produced, the fixed costs are divided among a larger number of units, resulting in a lower average fixed cost.