Economy, asked by pateltiya742, 6 months ago

average fixed cost has a tendency to increase as the output increases and the coorination between fixed and variable factor becomes bad explain

Answers

Answered by yashg30
0

As output approaches Zero, average fixed cost approaches infinity, but AFC curve never touches the Y-axis. On the other hand, as output reaches very high levels, average fixed cost approaches zero, but it never reduces itself to zero, it always remains positive. Hence the AFC curve never touches the X-axis also.

Similar questions