When the Output of the firm increases in the Short run, its average fixed cost :

CA Foundation · Business Economics · MTP · April 2025
When the Output of the firm increases in the Short run, its average fixed cost :
(A) A. Decreases
(B) B. Increases
(C) C. First decline and then rise
(D) D. remains constant

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Decreases

Topics: Theory of Production and Cost

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic