If Cf = 25000 is a fixed cost function, show that the average fixed cost function Cf = Cf / q is decreasing for q>0 ; therefore, when production q grows by one unit, the unit portion of the fixed cost is reduced.
If Cf = 25000 is a fixed cost function, show that the average fixed cost function Cf = Cf / q is decreasing for q>0 ; therefore, when production q grows by one unit, the unit portion of the fixed cost is reduced.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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1. If Cf = 25000 is a fixed cost function, show that the average fixed cost function Cf = Cf / q is decreasing for q>0 ; therefore, when production q grows by one unit, the unit portion of the fixed cost is reduced.
![Cf](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3721fdc-2664-456b-b333-ed9ea3333fda%2F06864e9d-78c4-475b-9e88-e6e6732bbdd7%2Fydb3o7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cf
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