Home / Aptitude Tests / Economics / The total fixed cost...

The total fixed cost curve is

...

The total fixed cost curve is

A.

Horizontal

B.

Upward sloping

C.

Vertical

D.

Downward sloping

Correct answer is C

The total fixed cost curve is vertical. This is because the total fixed cost does not change with the level of output.

 

Fixed costs are costs that do not vary with the level of output. These costs are incurred regardless of how much output is produced. Examples of fixed costs include rent, insurance, and depreciation.

 

The total fixed cost curve is a graph that shows the relationship between total fixed cost and the level of output. The curve is vertical because the total fixed cost does not change with the level of output.