How does average fixed cost behaves as output is increased?

1.	How does average fixed cost behaves as output is increased?
Answer» Solution :Average total cost is greater than average variable cost because ATC is the sum of average fixed cost and average variable,while average variable cost(AVC) is a FIRM's variable costs(LABOR, electricity, ETC.) DIVIDED by the quantity (Q) of output produced.Variable costs are those costs which vary with output.

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