What are fixed costs & Explain the nature and
shape of the total fixed and average fixed cost
curves.
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hey mate here is your answer
Explanation:
Total Fixed cost Curve is a straight line parallel to x-axis as it remains constant at all levels of output.
The average fixed cost (AFC) curve looks like a Rectangular Hyperbola. It happens because same amount of fixed cost is divided by increasing output. As a result, AFC curve slope downwards and is rectangular hyperbola, i.e. area under AFC curve remains same at different points.
hope it helps you......
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