When graphed, a typical fixed cost appears as:
A) a horizontal line.
B) a vertical line.
C) a u-shaped line.
D) a diagonal line that slopes downward to the right.
E) a diagonal line that slopes upward to the right.

Question

Quizplus · Accepted Answer

Fixed costs do not change with the level of output, so when graphed, they appear as a horizontal line, indicating that the cost is constant regardless of the quantity produced.

When Graphed, a Typical Fixed Cost Appears As