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The average fixed cost for a firm______a. first decreases and then increases as output increases. b. is increasing over all levels of output. c. is constant at all levels of output. d. is decreasing over all levels of output. E) first increases at an increasing rate and then declines.

User Ntina
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Answer:

correct option is d. is decreasing over all levels of output

Step-by-step explanation:

solution

As we know that when the quantity is increasing then the the average fixed cost will keep decreasing

because here formula for average fixed cost is express as

average fixed cost =
(fix\ cost)/(quantity) ...................1

so when quantity increase it will decrease the average fixed cost

so here correct option is d. is decreasing over all levels of output

User RHSeeger
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