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Economics miscellaneous

  1. Total fixed cost curve is
    1. Vertical
    2. Horizontal
    3. Positively Sloping
    4. Negatively sloping
Correct Option: B

The Total Fixed Cost Curve is a curve that graphically represents the relation between total fixed cost incurred by a firm in the short-run product of a good or service and the quantity produced. This curve is constructed to capture the relation between total fixed cost and the level of output, holding other variables, like technology and resource prices, constant. Because total fixed cost are, in fact, fixed, the total fixed cost curve is, in fact, a horizontal line.



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