Question

Cost incurred on fix factor​

Answer 1

• AFC: The per unit cost incurred on fixed factors of production is known as average fixed cost. AFC always decreases as the firm increases the level of production. AVC: It is variable cost per unit of output produced.

Answer 2

AFC: The per unit cost incurred on fixed factors of production is known as average fixed cost. AFC always decreases as the firm increases the level of production. AVC: It is variable cost per unit of output produced.