Q.A firm's total fixed cost is Rs. 50,000 per month. Its average fixed cost at output $x$ units is $\text{AFC}(x)=\dfrac{50{,}000}{x}$. Find $\displaystyle\lim_{x\to\infty}\text{AFC}(x)$ and interpret the result in business terms.

As output grows without bound, the fixed cost of Rs. 50,000 is divided among more and more units, so the average fixed cost per unit shrinks toward zero. …

Step 1 — Apply the limit directly.

since the numerator is a fixed constant while the denominator grows without bound.

Dual-check — evaluate AFC at increasingly large, concrete outputs.

The numerical trend — steadily falling toward, but never reaching, Rs. 0 — confirms the algebraic limit of 0. …

Concluding that the average fixed cost "becomes zero" at some specific finite output level is a misreading — the limit describes a value approached as $x$ grows with …