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The average fixed cost (AFC) curve is asymptote to:

A. X-axis

B. Y-axis

C. Z-axis

D. None of the above

Correct Answer : A.


Asymptote of a curve is a line such that the distance b/w the curve and the line approaches zero and the slope of the curve at the point approaches the slope of the line. So asymptote is, essentially, a line that a graph approaches, but does not intersect. The AFC curve is horizontal asymptote b/c it gets closer and closer to X-axis but never intersect it.}

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