Average fixed cost curve is actually a ................curve:

The correct answer is Option (1) → Rectangular Hyperbola Curve.

The Average Fixed Cost (AFC) curve shows the fixed cost per unit of output.

AFC=TFC/ q​

As output (Q) increases, the same total fixed cost (TFC) is spread over more units, so AFC continuously falls — but never reaches zero. The product of AFC × Q = TFC is constant, which means the curve forms a rectangular hyperbola — each point on the curve shows the same rectangular area under it (representing total fixed cost).