Q42
What is the shape of the average fixed cost (AFC) curve?
A.
U-shape
B.
Horizontal up to a point and then rising
C.
Sloping down towards the right
D.
Rectangular hyperbola
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Rectangular hyperbola is the shape of the average fixed cost (AFC) curve. The AFC curve is a rectangular hyperbola in the sense that all rectangles formed by AFC are of equal sizes.