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| 1. |
AFC curve is a rectangular hyperbola curve. |
| Answer» Solution :True. Since TFC remains unchanged/constant. As output increases and TFC remains fixed , AFC declines continuously. As the same VOLUME of fixed cost is divided is dividedby the - LARGER volume of output, AFC must decline .Further, the AFC CURVE is a rectangular hyperbola in the sense that all RECTANGLES formed by AFC are of equal sizes. | |