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Question : The average fixed cost curve is:

Option 1: upward sloping

Option 2: 'U' shaped

Option 3: 'V' shaped

Option 4: downward sloping


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: downward sloping


Solution : The correct option is downward sloping.

The average Fixed cost (AFC) curve is one of the cost curves used in economics to analyse the cost structure of a firm. It represents the Fixed cost per unit of output. The average fixed cost curve is typically downward sloping.

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