Shape of Average Fixed Cost Curve is:

Rectangular Hyperbola

The correct answer is Option (3) → Rectangular Hyperbola

The Average Fixed Cost (AFC) curve is downward sloping and takes the shape of a rectangular hyperbola because:

• AFC = TFC / Q (Total Fixed Cost divided by Output).

• As output (Q) increases, AFC decreases.

• However, it never becomes zero, since fixed cost is spread over more and more units.

This gives the AFC curve a rectangular hyperbola shape — continuously falling but never touching the x-axis.