Economics · Production and Costs
In the short run, average fixed cost declines continuously as output increases because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Fixed cost falls with output
- 2Variable cost rises at a decreasing rate
- 3Fixed cost is spread over more units✓
- 4Marginal cost is constant
Correct answer
Fixed cost is spread over more units
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