Question

Assertion (A):
The average fixed cost curve is a rectangular hyperbola.
Reason (R):
Multiplication of average fixed cost with the quantity of output produced, always yields a fixed value.

• A. Both (A) and (R) are correct and (R) is the correct explanation of (A)
• B. Both (A) and (R) are correct but (R) is not the correct explanation of (A)
• C. (A) is correct but (R) is not correct
• D. (A) is not correct but (R) is correct

Hint:

Logic Tip: Any curve where the product of two variables remains constant forms a rectangular hyperbola.

Answer 1

The Correct Option is A