Which of the following curves is a rectangular hyperbola?

ATC

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AFC

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AVC

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Solution

The correct option is B AFC
Total fixed cost (TFC) is constant at all levels of output. AFC is the average of total fixed cost and thus, with increase in output the AFC diminishes. The AFC curve is represented by a rectangular hyperbola.

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Which of the following curves is a rectangular hyperbola?

The correct option is B AFCTotal fixed cost (TFC) is constant at all levels of output. AFC is the average of total fixed cost and thus, with increase in output the AFC diminishes. The AFC curve is represented by a rectangular hyperbola.

The correct option is B AFC
Total fixed cost (TFC) is constant at all levels of output. AFC is the average of total fixed cost and thus, with increase in output the AFC diminishes. The AFC curve is represented by a rectangular hyperbola.