Which of the following is an equation of a fixed cost function?
A)y = bX + a
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 = bX + a 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 change with an increase or decrease in the number of units produced or sold. Thus, it can be represented by a constant or an intercept in an equation. The equation y = a represents a fixed cost function, where 'a' is the fixed cost.

Which of the Following Is an Equation of a Fixed