Which of the following observations is true?
A)TFC remains the same irrespective of units of output produced.
B)TVC remains the same irrespective of units of output produced.
C)TVC falls as the unit of output increases.
D)AFC increases as output increases further and further.

Question

Quizplus · Accepted Answer

Total Fixed Cost (TFC) remains constant regardless of the level of output produced, as it represents costs that do not vary with the level of production, such as rent, salaries, and equipment costs.

Which of the Following Observations Is True