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Economics Homework Thirteen Answers - Student Four (view source)

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'''1. Which is true about the average fixed costs (AFC) of a firm?

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'''1. Which is true about the average fixed costs (AFC) of a firm?'''

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~~(a)a firm can eliminate these costs by shutting down in the short run.~~

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~~(b) as output increases, AFC decreases~~

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~~(c) as output increases, AFC increases~~

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~~(d) AFC is part of average variable costs~~

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~~Briefly explain your answer.'''~~'''

(a) - in the short run there are a lot of fixed costs, not so many in the long run.

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