Answer:
(A) when output increases, the firm spreads its total fixed cost over a larger output
Explanation:
The average fixed cost will decrease as the output increase because the company allocate ths cost over a larger amount making the weight on each unit decrease:
[tex]\lim_{n \to \infty} \frac{x}{n} = 0[/tex]
Using math we can determinate that the fixed cost tend to zer oas higher increase the amount of quantity produced.
