Which of the Following Is True About Average Fixed Cost

Multiple Choice

Which of the following is true about average fixed cost?

A) Average fixed cost has a U-shape, and marginal cost crosses average fixed cost at its minimum point.
B) Average fixed cost does not vary as output increases.
C) Average fixed cost is the difference between marginal cost and average total cost.
D) Average fixed cost is total fixed cost divided by the quantity of output produced, and it declines steadily as output increases.