Cost Of Production and Concept of Revenue — Economics STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsCost Of Production and Concept of Revenue1 Mark
Question
Why does the average fixed costs decrease with the increase in production?
✓
Answer
When production increases the Total Fixed Cost $(TFC)$ gets distributed among more units and so Average Fixed Cost decreases with increase in production.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.