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Why AFC curve is rectangular hyperbola

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Why AFC curve is rectangular hyperbola

Posted by Anisha Negi 5 years, 10 months ago

CBSE > Class 11 > Economics

3 answers

Maheshwari Mansi 5 years, 9 months ago

Because TFC is constant

Shivam Gupta 5 years, 10 months ago

Because AFC ×q=tfc which is constant at all level of output

Yogita Ingle 5 years, 10 months ago

AFC curve is rectangular hyperbola because, AFC= TFC/Q. As TFC remains fixed at al level of output, with the rise in output, AFC fall. Since TFC is never zero, AFC curve doesnot touch horizontal axis.Thus the shape of AFC curve is rectangular hyperbola.

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