{"id":59865,"date":"2024-04-16T01:44:51","date_gmt":"2024-04-16T01:44:51","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59865"},"modified":"2024-04-16T01:44:51","modified_gmt":"2024-04-16T01:44:51","slug":"the-basic-nature-of-average-fixed-cost-is-that-it","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-basic-nature-of-average-fixed-cost-is-that-it\/","title":{"rendered":"The basic nature of average fixed cost is that it"},"content":{"rendered":"

[amp_mcq option1=”increases as output increases” option2=”remain same at all levels of output” option3=”decreases with increase in output” option4=”All of the above” correct=”option2″]<\/p>\n

The correct answer is: B. remain same at all levels of output.<\/p>\n

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 output, such as rent, insurance, and depreciation. As output increases, AFC decreases because the fixed cost is spread over a larger number of units.<\/p>\n

Option A is incorrect because AFC decreases as output increases. Option C is incorrect because AFC does not decrease with increase in output. Option D is incorrect because only option B is correct.<\/p>\n","protected":false},"excerpt":{"rendered":"

[amp_mcq option1=”increases as output increases” option2=”remain same at all levels of output” option3=”decreases with increase in output” option4=”All of the above” correct=”option2″]<\/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-59865","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\nThe basic nature of average fixed cost is that it<\/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\/the-basic-nature-of-average-fixed-cost-is-that-it\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The basic nature of average fixed cost is that it\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=”increases as output increases” option2=”remain same at all levels of output” option3=”decreases with increase in output” option4=”All of the above” correct=”option2″]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-basic-nature-of-average-fixed-cost-is-that-it\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T01:44:51+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The basic nature of average fixed cost is that it","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-basic-nature-of-average-fixed-cost-is-that-it\/","og_locale":"en_US","og_type":"article","og_title":"The basic nature of average fixed cost is that it","og_description":"[amp_mcq option1=”increases as output increases” option2=”remain same at all levels of output” option3=”decreases with increase in output” option4=”All of the above” correct=”option2″]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-basic-nature-of-average-fixed-cost-is-that-it\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T01:44:51+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-basic-nature-of-average-fixed-cost-is-that-it\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-basic-nature-of-average-fixed-cost-is-that-it\/","name":"The basic nature of average fixed cost is that it","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-16T01:44:51+00:00","dateModified":"2024-04-16T01:44:51+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/the-basic-nature-of-average-fixed-cost-is-that-it\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/the-basic-nature-of-average-fixed-cost-is-that-it\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-basic-nature-of-average-fixed-cost-is-that-it\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Economics","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/economics\/"},{"@type":"ListItem","position":4,"name":"The basic nature of average fixed cost is that it"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=59865"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59865\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=59865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=59865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=59865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}