A common name for fixed cost is overhead. If you divide fixed cost by the quantity of
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A common name for fixed cost is “overhead.” If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is $1,000. What does the average fixed cost curve look like? Use your response to explain what “spreading the overhead” means.
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The average fixed cost AFC curve is a downwardsloping line that intersects the yaxis at the fixed co...View the full answer
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