2 years ago

Average fixed cost

Business

2 answers:

QveST [7]2 years ago

5 0

Answer:

d. declines continually as output increases.

MrRa [10]2 years ago

3 0

Answer:

d. declines continually as output increases.

Explanation:

Fixed costs remain constant throughout a period regardless of output level. Average fixed costs are obtained by dividing fixed costs by the total output. Because fixed costs do not change, average fixed costs will be influenced mostly by the production level.

A large output means that fixed costs will be spread in many units. The result is a reduction in average fixed costs. When the output is large, a firm enjoys economies of scale. A small output will result in high fixed average costs. A Fixed amount will be shared among a fewer number of units.

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lbvjy [14]

Answer:

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Following information provided in the question

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geniusboy [140]

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2 years ago