{"id":43956,"date":"2024-04-15T21:36:50","date_gmt":"2024-04-15T21:36:50","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43956"},"modified":"2024-04-15T21:36:50","modified_gmt":"2024-04-15T21:36:50","slug":"what-is-the-shape-of-the-average-fixed-cost-afc-curve","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-shape-of-the-average-fixed-cost-afc-curve\/","title":{"rendered":"What is the shape of the average fixed cost (AFC) curve?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;U-shape&#8221; option2=&#8221;Horizontal up to a point and then rising&#8221; option3=&#8221;Sloping down towards the right&#8221; option4=&#8221;Rectangular hyperbola&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is C. Sloping down towards the right.<\/p>\n<p>Average fixed cost (AFC) is the total fixed cost divided by the number of units produced. Fixed costs are costs that do not change with the level of production, such as rent, insurance, and depreciation. As the number of units produced increases, AFC decreases. This is because the fixed costs are spread out over a larger number of units.<\/p>\n<p>Option A is incorrect because the average fixed cost curve is not U-shaped. The average fixed cost curve is always downward-sloping.<\/p>\n<p>Option B is incorrect because the average fixed cost curve is not horizontal up to a point and then rising. The average fixed cost curve is always downward-sloping.<\/p>\n<p>Option D is incorrect because the average fixed cost curve is not a rectangular hyperbola. The average fixed cost curve is always downward-sloping.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;U-shape&#8221; option2=&#8221;Horizontal up to a point and then rising&#8221; option3=&#8221;Sloping down towards the right&#8221; option4=&#8221;Rectangular hyperbola&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-43956","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the shape of the average fixed cost (AFC) curve?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-shape-of-the-average-fixed-cost-afc-curve\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is the shape of the average fixed cost (AFC) curve?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;U-shape&#8221; 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