◈ Oracle PrepSign Up Free
O-LevelEconomicsThe allocation of resources2281/11 · May/June 2011 · Q221 Mark

If a firm increases its output in the short run, what will happen to its average fixed cost (AFC)?

AAFC will decrease continually.
BAFC will equal zero.
CAFC will increase then decrease.
DAFC will increase continually.

✓ Correct answer

A: AFC will decrease continually.

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill The allocation of resources and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2011 Paper 1 Variant 1, question 22.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

The allocation of resourcesMay/June 20111m

What is an advantage of the market economic system?

The allocation of resourcesMay/June 20111m

Which pair of economic institutions can be found in a market economy?

The allocation of resourcesMay/June 20111m

In a country where the demand for petrol (gas) is price-inelastic, the incidence of any increase in petrol tax will b…

Government and the macroeconomyMay/June 20121m

A government decides to sell to a private firm its monopoly supply of gas to households. How could the government pro…

Government and the macroeconomyMay/June 20121m

Changes in demand mean that the government of Bangladesh hopes to switch some production from clothes made by low-pai…

Government and the macroeconomyMay/June 20121m

An increase in which of the following is least likely to cause inflation?

← Browse all past-paper questions

© 2026 Oracle Prep