What does the averge fixed cost curve look like ? Why doesit look so ?

1.	What does the averge fixed cost curve look like ? Why doesit look so ?
Answer» Solution :The AVERAGE fixed cost (AFC) curve looks like a rectangularhyperbola. Ithappens because same AMOUNT of fixed cost is divided by increasing output. As a result, , AFC curve slope downwardsand is a RECTANGULAR HYPERBOLA, i.e., area under AFC remains same at different points.

Discussion