asked 164k views
1 vote
As output​ increases, total fixed cost​ ________ and average fixed cost​ ________. A. ​decreases; increases B. ​increases; decreases C. ​decreases; does not change

asked
User Kablamus
by
8.5k points

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

answered
User Ronnie
by
7.9k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.