If the average fixed cost of production is the fixed cost per unit of output produced. Then it will _______. Option 1: Remains same at all levels of output. Option 2: Increases with increase in the level of output. Option 3: Decreases with increase in level of output. Option 4: First increases and then decreases as the output is increased.

The answer is 'Decreases with increase in level of output.'. View full solution:

CUET Economics - If the average fixed cost of production is the fixed cost per unit of output produced. Then it will _______. | PYQs + Solutions

CUET Economics 2025 26 May Shift 2

Micro

Easy

Remains same at all levels of output.

Increases with increase in the level of output.

Decreases with increase in level of output.

First increases and then decreases as the output is increased.

✅ Correct Option: 3

Related questions:

28 May Shift 2

Choose the correct statements in respect of returns to scale.

(A) Decreasing returns to scale occur when a proportional increase in all inputs is less than output.

(B) Constant returns to scale occur when a proportional increase in all inputs is the same as output.

(D) Increasing returns to scale occur when a proportional increase in all inputs is less than output.

Choose the correct answer from the options given below:

31 May Shift 1

Suppose in a production process, all inputs get doubled. As a result, if the output gets doubled, the production function exhibits?

29 May Shift 2

Arrange the following statements in chronological order in respect to the impact of a unit tax on supply:

(A) Imposition of unit tax increases the price of commodities.

(B) Increased prices will lead to an increase in LRAC and LRMC.

(D) At any given market price, the firm supplies fewer units of output.

Choose the correct answer from the options given below: