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As output​ increases, total fixed cost​ ________ and average fixed cost​ ________. A. ​decreases; increases B. ​increases; decreases C. ​decreases; does not change

User Kablamus
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1 Answer

7 votes

Answer:

Does not change, decreases

Step-by-step explanation:

Total fixed cost doesn't vary with output. It remains the same regardless of if output increases or decreases.

Average fixed cost = Total fixed cost / quantity

Because Total fixed cost remains constant and quantity increases, the average fixed cost falls.

Note - the answer isn't in the options provided.

I hope my answer helps you

User Ronnie
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