Asked by Maricris Tersol on May 18, 2024
Verified
Which of the graphs in Figure 21-1 illustrates the behavior of a total fixed cost?
A) Graph 2
B) Graph 3
C) Graph 4
D) Graph 1
Total Fixed Cost
The sum of all costs that remain constant regardless of the level of production or business activity.
- Identify and understand different types of costs (variable, fixed, mixed).
Verified Answer
MG
Mariah GareisMay 25, 2024
Final Answer :
D
Explanation :
Graph 1 shows a straight horizontal line, which indicates a total fixed cost. Fixed costs do not vary with changes in output, so the cost remains the same regardless of how much is produced.
Learning Objectives
- Identify and understand different types of costs (variable, fixed, mixed).