What is the shape of the AFC curve and why does it have this ...

[tatyanajohnson]

What is the shape of the AFC curve and why does it have this shape?
 
  What will be an ideal response?

Question 2

When voluntary exchange takes place, only one party gains from the exchange.
 
  Indicate whether the statement is true or false

[Bsand8]

Answer to Question 1

Average fixed cost (AFC) equals total fixed cost divided by total product. As the quantity produced increases, the fixed costs are spread over a larger and larger quantity of output so average fixed cost decreases. So the AFC curve slopes downward as the quantity produced increases.

Answer to Question 2

FALSE

[tatyanajohnson]

TYSM

[Zebsrer]

Thanks for the timely response, appreciate it