JAMB Economics 2009 Objective — Question 20

Question 20 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2009 Objective paper, with the correct answer and a full explanation.

As the level of output increases, the average fixed cost of a firm will

A. continue to increase
B. remain unchanged
C. continue to decreaseCorrect
D. be equal to the total cost

Explanation

As output increases the Average Fixed Cost continues to decrease because the total fixed cost does not change.

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