Final answer:
The average fixed cost curve is a downward-sloping curve that decreases as the quantity of output produced increases. Spreading the overhead refers to allocating fixed costs across the units of output to determine the total cost per unit.
Step-by-step explanation:
The subject of the question is Business.
The average fixed cost curve is a downward-sloping curve that starts high and gradually decreases as the quantity of output produced increases. This is because, as more output is produced, the fixed cost is spread over a larger quantity, resulting in a lower average fixed cost per unit.
Spreading the overhead refers to the process of allocating fixed costs across the units of output. By spreading the overhead, the fixed costs are divided among the products or services being produced, which helps in determining the total cost per unit and making informed pricing decisions.