In the short run, when the output of a firm increases, its average fixed cost Options: A . &nbspIncreases B . &nbspDecreases C . &nbspRemains constant D . &nbspFirst declines and then rises

In the short run, when the output of a firm increases, its average fixed cost

Question

In the short run, when the output of a firm increases, its average fixed cost

Options:

A . Increases

B . Decreases

C . Remains constant

D . First declines and then rises

Answer: Option B
In the short run, when the output of a firm increases, its average fixed cost decreases.

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