Vidyalelo
Commerce · Q144

Economics

Graduate and Post Graduate · Commerce · question 144

Q144

In the short run, when the output of a firm increases, its average fixed cost

A.
Increases
B.
Decreases
Answer
C.
Remains constant
D.
First declines and then rises

Answer: Option B

Solution

Answer: Option B
Solution:
In the short run, when the output of a firm increases, its average fixed cost decreases.