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Tuesday, 05 May 2026
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One feature of the average fixed cost is that it ____________

One feature of the average fixed cost is that it ____________
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Falls continuously but is never equal to zero.
  • B Is U-shaped and intersects the Y-axis
  • C Rises and falls faster than the marginal cost
  • D Is always higher than the average variable cost
Correct Answer: Option A
Explanation:
The average cost curve keeps falling as the level of output rises. It remains positive, and never reaches a zero value, and never turns negative.

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