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Average fixed cost A. increases as output rises. B. remains constant as output rises. C. equals marginal cost for the first unit of output. D. decreases as output rises.

Respuesta :

Answer:

D

Explanation:

Average fixed cost = total fixed cost / output

Fixed cost is cost that does not vary with output.

for example electricity tariff

for example, total fixed cost is $10,000. what is average fixed cost when output is 500 and 1000

$10,000 / 500 = $20

$10,000 / 1000 = $10

We can see that average fixed cost decreased as output increased

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