WAEC Economics 2022 Paper

Concept:Average fixed cost is the fixed cost per unit of output, so it falls as output rises.Explanation:Total fixed cost remains constant at all output levels.Average fixed cost is calculated as $\text{AFC} = \frac{\text{TFC}}{Q}$.Since total fixed cost ($\text{TFC}$) is constant, an increase in output ($Q$) causes $\text{AFC}$ to decrease.Therefore, average fixed cost varies inversely with output.Marginal cost, average cost, and total fixed cost do not follow this inverse relationship.Answer:C. average fixed cost