The production cost that varies inversely with output is the

The production cost that varies inversely with output is the
A. total fixed cost
B. marginal cost
C. average fixed cost
D. average cost
Correct Option: Answer is C
Average fixed cost (AFC) is the fixed cost per unit of output. As output increases, the average fixed cost decreases. This is because the fixed cost is spread over a larger number of units, so each unit bears a smaller share of the fixed cost.
For example, if a factory has a fixed cost of $100 and produces 100 units, then the average fixed cost is $1. However, if the factory produces 200 units, then the average fixed cost is $0.5.

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