Why AFC curve is rectangular hyperbola

1.	Why AFC curve is rectangular hyperbola
Answer» Because TFC is constant<br>Because AFC ×q=tfc which is constant at all level of output<br>AFC curve is rectangular hyperbola because, AFC= TFC/Q. As TFC remains fixed at al level of output, with the rise in output, AFC fall. Since TFC is never zero, AFC curve doesnot touch horizontal axis.Thus the shape of AFC curve is rectangular hyperbola.

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