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Question
The average fixed cost curve will always be
Options:
A .  a downward sloping convex to the origin curve
B .  a downward sloping straight line
C .  a rectangular hyperbola
D .  a U-shaped curve
Answer: Option C
Answer: (c)
Total fixed costs are constant, so the average fixed cost curve diminishes with the output. Thus, the average fixed cost curve is a rectangular hyperbola.

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