What does the average fixed cost curve look like? Why does it loo… - Vidyadip

Question

What does the average fixed cost curve look like? Why does it look so?

✓

Answer

The average fixed cost (AFC) curve is a rectangular hyperbola. Because TFC is constant at all levels of output.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "2 Marks Question" from MICROECONOMICS CH : 8 CONCEPTS OF COST→MICROECONOMICS CH : 8 CONCEPTS OF COST — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

What is the law of diminishing marginal product?

Give the properties of production possibility curve.

Giffen goods must be inferior goods, while inferior goods, may or may not be Giffen goods. Comment.

Define decrease in demand. What causes decrease in demand?

What do you mean by a normal good?

What are the total fixed cost, total variable cost and total cost of a firm? How are they related?

What do you mean by substitutes? Give examples of two goods which are substitutes of each other.

Price of the commodity increases from $₹10$ to $₹12$ per unit and expenditure on the commodity increases by $20\%$. Find elasticity. Give a logical support to your answer.

If a consumer has monotonic preferences, can she be indifferent between the bundles (10, 8) and (8, 6)?

If the price of a substitute(Y) of Good-X increases, what impact does it have on the equilibrium price and quantity of Good-X?