When graphed, the total cost of production will
A) intercept the vertical axis at the level of fixed cost
B) first slope down, then slope up
C) slope down forever
D) first slope up, then slope down
E) be a horizontal line

Question

Quizplus · Accepted Answer

The total cost of production graph intercepts the vertical axis at the level of fixed costs because fixed costs are incurred regardless of the level of production, meaning even when production is zero, these costs are still present.

When Graphed, the Total Cost of Production Will