The fixed cost curve:
A)is steep when output levels are low, and then flattens as output increases.
B)is flatter when output levels are low, and then gets steeper as output increases.
C)is a constant, flat line.
D)is a constant, vertical line.

Question

Quizplus · Accepted Answer

Fixed costs do not change with the level of output, so the fixed cost curve is a constant, flat line, representing that these costs are the same regardless of the quantity produced.

The Fixed Cost Curve