If average variable cost is increasing with increases in output,total fixed cost will:
A) increase with increases in output.
B) decrease with increases in output.
C) remain unchanged with increases in output.
D) increase initially and then decrease with increases in output.
E) decrease initially and then increase with increases in output.

Question

Quizplus · Accepted Answer

Total fixed cost remains unchanged with increases in output, as it does not vary with the level of production.

If Average Variable Cost Is Increasing with Increases in Output,total