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What is the behaviour of average fixed cost as output is increased ? Why is it so ?

Answer» <html><body><p></p>Solution :Average fixed cost is fixed cost per unit of output. As the <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> number of units of the <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> produced increases, the average fixed cost <a href="https://interviewquestions.tuteehub.com/tag/decreases-946143" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASES">DECREASES</a> because the same amount of fixed costs is being spread over a <a href="https://interviewquestions.tuteehub.com/tag/larger-1067345" style="font-weight:bold;" target="_blank" title="Click to know more about LARGER">LARGER</a> number of units of output.</body></html>


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