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WAEC Economics 2022 Question 19

Question 19

Theory of Costs and Revenue

The production cost that varies inversely with output is the

  1. A.total fixed cost
  2. B.marginal cost
  3. C.average fixed cost
  4. D.average cost
Show the answer and explanation

Answer: C (average fixed cost)

Explanation

AFC = fixed cost ÷ output, so it falls whenever output rises.