Answer to Question #155451 in Microeconomics for Kelly

Question

In short run wats gets smaller as output increases

Answer 1

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:

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

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

Answer:

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