Total fixed cost (TFC)
A)falls as the firm expands output from zero, but eventually rises.
B)falls continuously as total output expands.
C)varies directly with total output.
D)does not change as total output increases or decreases.

Question

Quizplus · Accepted Answer

Total fixed cost (TFC) does not change with the level of output. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.

Total Fixed Cost (TFC)