-The graph above illustrates the total cost function for GoodieCookie Co. How are the company's fixed costs represented in this graph?
A) by adding up the fixed costs
B) at any vertical axis point where the total cost curve never equals zero
C) as the point where the total cost curve touches the vertical axis
D) by adding up the variable costs

Question

-The graph above illustrates the total cost function for GoodieCookie Co. How are the company's fixed costs represented in this graph?
A) by adding up the fixed costs 
B) at any vertical axis point where the total cost curve never equals zero 
C) as the point where the total cost curve touches the vertical axis 
D) by adding up the variable costs

Quizplus · Accepted Answer

Fixed costs are represented as the point where the total cost curve touches the vertical axis, indicating the costs incurred by the company even when the production level is zero.

-The Graph Above Illustrates the Total Cost Function for GoodieCookie