with an increase in production the average fixed cost
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Hey there
With an increase in production of goods, the AFC that is Average fixed cost actually decreases.
What is AFC?
It is given by FC/Q.
Here,
<> FC - Fixed cost of good's production, and it doesn't change mostly that's why is fixed.
<> Q - The total produced quantity.
Thanks
With an increase in production of goods, the AFC that is Average fixed cost actually decreases.
What is AFC?
It is given by FC/Q.
Here,
<> FC - Fixed cost of good's production, and it doesn't change mostly that's why is fixed.
<> Q - The total produced quantity.
Thanks
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rishilaugh:
very nice answer
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