CFA Practice Question

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CFA Practice Question

Average fixed cost ______
A. remains unchanged with increasing output.
B. continually declines with increasing output.
C. initially declines and then rises with increasing output.

User Contributed Comments 3

User Comment
Lamkerst numerator is fixed, and denominator increases => result will be declining
BossMan Law of diminished returns does not apply?
niuniucow @BossMan: no. It's about cost, not return.
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