If the total fixed cost is the same regardless of output, the average fixed cost will be

Assessment: JAMB UTME - Economics - 2007 Subject: Economics

Question 1 Report

If the total fixed cost is the same regardless of output, the average fixed cost will be
Answer Details
If the total fixed cost is the same regardless of output, then the average fixed cost will decrease as output increases. This is because the same amount of fixed cost is being spread out over a larger quantity of output, resulting in a lower cost per unit of output. Therefore, the correct answer is "decreasing".

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