Question

Can we say Average fixed cost is eventually touch x axis

Answer 1

[AI-generated answer — Bot GPT 3.5]

No, average fixed cost does not eventually touch the x-axis. Average fixed cost is calculated by dividing total fixed cost by the quantity of output produced. It starts high when output is low, gradually decreases as output increases, but it never reaches zero or touches the x-axis. Average fixed cost continuously decreases as output increases, but it never becomes zero.