The shape of the Average Fixed Cost (AFC) curve will be

1.	The shape of the Average Fixed Cost (AFC) curve will be
Answer» EXPLANATION: The average FIXED costs AFC curve is downward sloping because fixed costs are distributed over a larger volume when the quantity produced increases. AFC is EQUAL to the vertical difference between ATC and AVC. Variable returns to SCALE explains why the other cost curves are U-shaped.

Answer»

The average FIXED costs AFC curve is downward sloping because fixed costs are distributed over a larger volume when the quantity produced increases. AFC is EQUAL to the vertical difference between ATC and AVC. Variable returns to SCALE explains why the other cost curves are U-shaped.

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The shape of the Average Fixed Cost (AFC) curve will be

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