Economy, asked by devikaraju1420, 4 months ago

Explain the shape of TFC and AFC curves

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Answered by chinarsingla78149558

2

Answer :

AFC is defined as the ratio of TFC to output. We know that TFC remains constant throughout all the output levels and as output increases, with TFC being constant, AFC decreases. s TFC remains fixed at all level of output, with the rise in output , AFC fall . ... Thus the shape of AFC curve is Rectangular hyperbola.

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