Figure 7-4
-Total fixed cost
A)increases as output increases.
B)declines as output increases.
C)is always zero.
D)remains constant even if the firm shuts down.

Name: Figure 7-4 -Total fixed cost A)increases as output increases. B)declines as output increases. C)is always zero. D)remains constant even if the firm shuts down.
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Question

Figure 7-4 
-Total fixed cost
A)increases as output increases. 
B)declines as output increases. 
C)is always zero. 
D)remains constant even if the firm shuts down.

Quizplus · Accepted Answer

Total fixed cost remains constant even if the firm shuts down, as it is not affected by the level of output.

Figure 7-4 -Total Fixed Cost