Which of the following is an equation of a fixed cost function?
A) y = (a + b)X
B) y = a + bX
C) y = bX
D) y = a

Name: Which of the following is an equation of a fixed cost function? A) y = (a + b)X B) y = a + bX C) y = bX D) y = a
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Question

Quizplus · Accepted Answer

A fixed cost is a cost that does not vary with the level of production or sales. The equation y = a represents a fixed cost function, where a is a constant value that does not change with the quantity produced or sold. Therefore, the correct answer is D.

Which of the Following Is an Equation of a Fixed