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प्रश्न
What would happen to the following type of cost as output is increased?
Average fixed cost
अति संक्षिप्त उत्तर
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उत्तर
As output increases, the Average Fixed Cost (AFC) falls continuously. Because TFC remains constant, when output grows, the same fixed cost is distributed among more units. As a result, AFC decreases gradually but never reaches zero.
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