Final answer:
The average fixed cost curve is a decreasing curve that starts high at low levels of output and gradually decreases as output increases. "Spreading the overhead" refers to the concept of allocating fixed costs over a larger quantity of output.
Step-by-step explanation:
The average fixed cost curve is a decreasing curve that starts high at low levels of output and gradually decreases as output increases. It reaches a point where it becomes relatively flat, indicating that the fixed cost is spread over a larger quantity of output.
"Spreading the overhead" refers to the concept of allocating fixed costs over a larger quantity of output. As output increases, the average fixed cost decreases because the fixed cost is divided by a larger quantity of output.