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Q: What is the usual shape for an average fixed cost curve?
  • A. Rectangular hyperbola
  • B. Inverted V-shaped
  • C. U-shaped
  • D. Horizontal line
Correct Answer: Option A - The usual shape for an average fixed cost curve is rectangular hyperbola. The average fixed cot (AFC) is the fixed cost that does not fluctuate with the change in the number of goods and services produced by a company. The shape of average fixed cost curve appears like a Rectangular Hyperbola, because same amount of fixed cost is divided by increasing output.
A. The usual shape for an average fixed cost curve is rectangular hyperbola. The average fixed cot (AFC) is the fixed cost that does not fluctuate with the change in the number of goods and services produced by a company. The shape of average fixed cost curve appears like a Rectangular Hyperbola, because same amount of fixed cost is divided by increasing output.

Explanations:

The usual shape for an average fixed cost curve is rectangular hyperbola. The average fixed cot (AFC) is the fixed cost that does not fluctuate with the change in the number of goods and services produced by a company. The shape of average fixed cost curve appears like a Rectangular Hyperbola, because same amount of fixed cost is divided by increasing output.