WAEC Economics 2020 Objective — Question 19
Question 19 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.
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One feature of the average fixed cost (AFC) of production is that it
- A. falls continuously but is never equal to zeroCorrect
- B. is U-shaped and intersects the Y-axis
- C. rises and falls faster than the marginal cost
- D. is always higher than the average variable cost
Explanation
Average fixed cost continuously falls as output rises (since fixed costs are spread over more units), but never reaches zero because total fixed cost is constant and positive.
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