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 in the graph represents the variable cost because it is the cost associated with producing different levels of output. Variable costs increase as the level of output increases, which is why the dotted line is sloped upwards. Fixed costs, on the other hand, do not vary with changes in output, and a fixed cost line would be a straight horizontal line. Mixed costs represent a combination of fixed and variable costs, and their graph would not have a clear straight line or slope.

In the Graph Below, Which Depicts the Relationship Between Units