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» <html><body><p></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/average-13416" style="font-weight:bold;" target="_blank" title="Click to know more about AVERAGE">AVERAGE</a> fixed cost (AFC) curve looks like a rectangularhyperbola. Ithappens because same <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> of fixed cost is divided by increasing output. As a result, , AFC curve slope downwardsand is a <a href="https://interviewquestions.tuteehub.com/tag/rectangular-1180623" style="font-weight:bold;" target="_blank" title="Click to know more about RECTANGULAR">RECTANGULAR</a> <a href="https://interviewquestions.tuteehub.com/tag/hyperbola-1034512" style="font-weight:bold;" target="_blank" title="Click to know more about HYPERBOLA">HYPERBOLA</a>, i.e., area under AFC remains same at different points.</body></html>

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