What is the behaviour of average fixed cost as output increases?

Solution

Average Fixed Cost refers to the fixed cost per unit of output produced. It is derived by dividing the Total Fixed Cost by total quantity of output produced. When the output increases, average fixed cost decreases.

Some More Questions From Production And Costs Chapter

What is meant by change in supply?

Due to improvement of technology, marginal costs of production of televisions have gone down. How will it affect the supply curve of television?

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Production And Costs

What is the behaviour of average fixed cost as output increases?

Some More Questions From Production And Costs Chapter

What is meant by change in supply?

Due to improvement of technology, marginal costs of production of televisions have gone down. How will it affect the supply curve of television?

What effect does a cost saving technological progress have on supply curve?

What effect does an increase in input price have on supply curve?

What effect does an increase in excise tax have on supply curve of product?

If a farmer grows rice and wheat, how will an increase in price of wheat affect supply curve of rice?

What is meant by market period?

How will an increase in number of firms shifts the market supply curve?

What is the shape of supply curve during very short (market period)?

What is the shape of supply curve during short or long period?

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