Average fixed cost __________.

remains the same whatever the level of output

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increases as output increses

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diminishes as output increases

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all of the above

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Solution

The correct option is C diminishes as output increases
The total fixed cost remains constant through varying levels of output. The AFC, thus, diminishes as the output increases.

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Average fixed cost __________.

The correct option is C diminishes as output increasesThe total fixed cost remains constant through varying levels of output. The AFC, thus, diminishes as the output increases.

The correct option is C diminishes as output increases
The total fixed cost remains constant through varying levels of output. The AFC, thus, diminishes as the output increases.