Which of the following curves is a rectangular hyperbola?
ATC
AVC
AFC
None of the above
Correct Answer :
C. AFC
Average fixed cost (AFC) is AFC= FC/Q, as production increases the value of Q increases and thus value of AFC will become smaller and smaller and get reaches near and near to X-axis but can never touch the X-axis because AFC can not become exact zero. Thus the AFC becomes the shape of rectangular hyperbola curve. It shows unitary elasticity because we know that the elasticity on points on rectangular hyperbola curve is equal to one.}
Related Questions
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Can result in behavior that is different from what it would be if the game were played once
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monopolistic firms
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none of the above
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Gross Marginal Utility
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Total profits are highest
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Government
Consumer
Producer
Stock holder
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A varying duration of time
A duration of time which permits necessary adjustments
A period with calculated intervals
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More than three commodities
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Upwards to the right
Backwards to the top
Inwards at the bottom
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TFC TVC
TFC/TVC
TVC/TFC
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Loss because of past
Learn from past
Destroy because of past
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J.S.Mill
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Prof.Senior
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advertisement
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