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:

3 June Shift 1

Chronologically, arrange the following statements in the context of shape of AP curve.

(A) MP starts falling, the AP continues to rise as long as MP remains higher than AP.

(B) At the first level of output, the MP and the AP are the same.

(D) MP rises, AP being the average of marginal products, also rises, but rises less than MP.

Choose the correct answer from the options given below:

22 May Shift 1

In the short run and long run, the shapes of the cost curves for a typical firm are defined as

(A). SMC curve cuts the AVC curve from below at its minimum point.

(B). LRAC curve cuts the LRMC curve from below at the minimum point of LRMC.

(C). SMC curve cuts the SAC curve from below at the minimum point of SAC.

(D). Average fixed cost curve is downward sloping.

Choose the correct answer from the options given below:

28 May Shift 2

Which of the following states that "The marginal product of a factor input initially rises with its employment level, but after reaching a certain level of employment, it starts falling"?

CUET Economics 2025 26 May Shift 2 PYQs

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