An AFC curve is:

[1 mark]

Convex and downward sloping

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Concave and downward sloping

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Convex and upward sloping

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Concave and upward rising

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Solution

The correct option is A Convex and downward sloping
The average fixed-cost AFC curve is convex and downward sloping because fixed costs are distributed over a larger volume when the quantity produced increases.

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What is the shape of the AFC curve?

If we multiply the x and y coordinates of any point on the AFC curve, we get

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A F C

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