--%>

AFC curve

What does AFC curve appear like? Why does it appear so?

E

Expert

Verified

AFC curve is downward sloping to the right. Since the output rises, the fixed cost gets distributed, that is, AFC downs or falls.

   Related Questions in Microeconomics

  • Q : Unitarily price elastic while small

    When small raises or decreases within the price of generic bananas do not influence the total sales revenue from bananas, in that case the market demand for generic bananas is: (i) perfectly price elastic. (ii) perfec

  • Q : Claimants to a firms income stream The

    The least probable of the given to be claimants to the firm’s income stream would be the firm’s: (1) Shareholders. (2) Managers. (3) Customers. (4) Suppliers. (5) Government. Can someone please help me in finding out th

  • Q : Define Marginal rate of Substitution or

    Marginal rate of Substitution (MRS): It is the rate at which a consumer is prepared to give up one good to get the other good.

  • Q : Problem based on type of economy Tell

    Tell me the answer of this question. Economists would describe the U.S. automobile industry as: A) purely competitive. B) an oligopoly. C) monopolistically competitive. D) a pure monopoly.

  • Q : Price elasticity of supply when demand

    When increased demand causes the price of main beluga caviar to climb from $2750 to $3250 per pound and consequently world production rises from 24 to 40 tons yearly, its caviar has a price elasticity of supply approx

  • Q : Competition-Social Welfare problem The

    The purely competitive firm in the output market which hires from a purely competitive labor market will employ the labor at the point where VMP = W as the firm: (i) Operates in society's best interest. (ii) Wants to be quite fair to workers. (iii) Is egalitarian inst

  • Q : Present Value of Annual Interest Rate

    When the annual interest rate is 11 percent and a small office building can be expected to lease perpetually for price of $33,000 annually, the building and also the land it sits onto have a present value of approximately: (1) $363,00

  • Q : Meaning of price taker To be a price

    To be a price taker implies: (w) the larger firm in the industry will set the price for all other firms. (x) the entire market (industry) sets the price for all firms to take. (y) each firm takes the price as specified by the government. (z) firms tak

  • Q : Fundamental welfare benefits by

    The incentive to work and earn income is possible to be greatest when the fundamental welfare benefit is ____ and the fundamental welfare benefit is reduced through ____ that the person earns: (w) high, the amount (x) low, the amount

  • Q : Personal distribution of income Select

    Select the right ans wer of the question. The personal distribution of income refers to the: A) division of income between personal taxes, consumption expenditures, and saving. B) division of income on the basis of industry sources, for example, agriculture, transport