Question #155451

In short run wats gets smaller as output increases


Expert's answer

In the short-run average fixed cost gets smaller as output increases.

By the definition, average fixed cost is the total fixed cost divided by the

number of units produced:


AFC=TFCQ.AFC=\dfrac{TFC}{Q}.

Since TFCTFC is constant, any increase in output decreases average fixed cost.

Answer:

In the short-run average fixed cost gets smaller as output increases.


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