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ra1l [238]
3 years ago
8

Draw an average fixed cost curve. Label it. The AFC curve has this shape because​ _______.

Business
1 answer:
Murrr4er [49]3 years ago
8 0

Answer:

(A) when output​ increases, the firm spreads its total fixed cost over a larger output

Explanation:

The average fixed cost will decrease as the output increase because the company allocate ths cost over a larger amount making the weight on each unit decrease:

\lim_{n \to \infty} \frac{x}{n} = 0

Using math we can determinate that the fixed cost tend to zer oas higher increase the amount of quantity produced.

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The relationship between the straight-line and double-declining-balance method is that they D. Produce the same total depreciation over an asset's useful life.

<h3>How are the straight-line and double-declining-balance methods related?</h3>

While they do not produce the same depreciation every year, they will eventually depreciate an asset in the same way overtime.

What this means is that both methods will depreciate an asset by the same amount at the end of the asset's life. However, the depreciation amounts will vary by method on an annual basis.

In conclusion, option D is correct.

Find out more on depreciation methods at brainly.com/question/26948130.

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