In the graph below, which depicts the relationship between units produced and total cost, the dotted line depicts which type of total cost?
A) Variable cost
B) Fixed cost
C) Mixed cost
D) None of these

Question

In the graph below, which depicts the relationship between units produced and total cost, the dotted line depicts which type of total cost? 
A) Variable cost 
B) Fixed cost 
C) Mixed cost 
D) None of these

Quizplus · Accepted Answer

The dotted line is a horizontal line, indicating that the total cost remains constant regardless of the level of production. This is characteristic of a fixed cost, which does not vary with changes in the level of output.

In the Graph Below, Which Depicts the Relationship Between Units