Explain the shapes of total fixed cost curve and average fixed cost curve. Give one reason each, to justify the shape of the two curves.

Question 1

Question 2

Total Fixed cost Curve is a straight line parallel to x-axis as it *** constant at all levels of output.

The average fixed cost (AFC) curve looks like a Rectangular Hyperbola. It happens because same amount of fixed cost is divided by increasing output. As a result, AFC curve slope downwards and is rectangular hyperbola, i.e. area under AFC curve *** same at different points.

kratos · Answer 1 · 2020-10-27T00:18:24+0000

Total Fixed cost Curve is a straight line parallel to x-axis as it *** constant at all levels of output.

The average fixed cost (AFC) curve looks like a Rectangular Hyperbola. It happens because same amount of fixed cost is divided by increasing output. As a result, AFC curve slope downwards and is rectangular hyperbola, i.e. area under AFC curve *** same at different points.

Explain the shapes of total fixed cost curve and average fixed cost curve. Give one reason each, to justify the shape of the two curves.

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

Please log in or register to add a comment.

Explain the shapes of total fixed cost curve and average fixed cost curve. Give one reason each, to justify the shape of the two curves.

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

Please log in or register to add a comment.

Related questions