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Anonymous asked in Social ScienceEconomics · 8 years ago

How does AFC Behaves as output is decreased?

1 Answer

  • buz
    Lv 7
    8 years ago
    Favorite Answer

    If AFC means average fixed cost, it kind of depends on what the question is asking. If 'output' refers to total output, then AFC increases as total output decreases. But if 'output' refers to marginal output, then AFC would decrease as marginal output increases.

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