--%>
Assignment Help - homework help

AFC curve

What does AFC curve appear like? Why does it appear so?

E

Expert

Verified

AFC curve is downward sloping to the right. Since the output rises, the fixed cost gets distributed, that is, AFC downs or falls.

   Related Questions in Microeconomics

  • Q : Effects of average production costs on

    The economies of scale exist whenever average production costs: (1) Increase as the level of output increases. (2) Drop as the level of output increases. (3) Stay similar as the level of output increases. (4) Drop as the level of output drops.

    Q : Goals of the Firm-Profit Maximization

    The supposition that firms try to maximize the profits: (i) Is the beginning point for most of the economic analyses of how firms function. (ii) Can be wrong for the cases in which the professional corporate managers maximize their own self interests rather than the i

    		•
  • Q : Goal of profit sharing plans Give the

    Give the answer of following question. For the firm, the major goal of profit sharing plans is to: A) force workers to incur some of the business risk. B) overcome the monopsony problem of having to pay higher wages to attract additional workers. C) overcome the princ

    		•
  • Q : Circular flow of Income Elucidate the

    Elucidate the circular flow of Income in two sector model. Answer: There are just two sectors namely: Firms and households. Households give factor services to the fi

    		•
  • Q : Determine the market price when demand

    When both demand and supply rise within the market for cell phones, we would suppose the market price to: (w) increase. (x) decrease. (y) increase, decrease, or stay similar, depending upon the relative magnitudes of the shifts. (z) s

    		•
  • Q : Important of economies of scale to

    Karl Marx's prediction which competition ultimately leads to monopoly is most likely to be valid while: (w) diseconomies of scale discourage competition. (x) there are always constant returns to scale. (y) economies of scale are important relative to

    		•
  • Q : Minimum Wage Laws-Group least likely to

    Can someone help me in finding out the right answer from the given options. The group which is least likely to be helped by the minimum wage law is: (1) African-American teenagers. (2) Skilled industrial workers. (3) Members of the unions. (4) Experienced construction

    		•
  • Q : Determine elasticity of supply when

    When a $5 price hike raises the number of tanks of dehydrated water supplied into this market from point a to point b, there elasticity of supply is: (w) 4.5. (x) 3.0. (y) 1.5. (z) 0.5.

    Q : Vietnam divided into two different

    Why Vietnam divided into two different nations?

    		•
  • Q : Possibility of price discrimination

    Price discrimination is not possible when: (w) arbitrage is impossible. (x) all consumers have identical demand curves for the good. (y) firms are not price takers. (z) products are differentiated. Please choose th

    		•