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Which of the following cost curve takes the shape of rectangular hyperbola?

Solution

✅ Correct Option: 2

Average fixed cost equals total fixed cost divided by output: AFC=TFC/QAFC = TFC/Q. Since TFC is constant, AFC×QAFC \times Q is constant at every point, which is the defining property of a rectangular hyperbola. Hence the AFC curve is a rectangular hyperbola.

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