Economy, asked by Manu7087, 1 year ago

Why AFC curve is rectangular hyperbola?

Answers

Answered by Anonymous
1
As output increases and TFC remains fixed, AFC declines continuously. As the same volume of fixed cost is divided by the – larger volume of output, AFC must decline. Further, the AFC curve is a rectangular hyperbola in the sense that all rectangles formed by AFC are of equal sizes.
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