In the graph below,which depicts the relationship between units produced and total cost,the dotted line depicts which type of total cost?
A) Variable cost
B) Fixed cost
C) Mixed cost
D) None of these

Question

In the graph below,which depicts the relationship between units produced and total cost,the dotted line depicts which type of total cost? 
A) Variable cost 
B) Fixed cost 
C) Mixed cost 
D) None of these

Quizplus · Accepted Answer

Since the total cost line intersects the vertical axis at zero,there is no fixed cost component in this total cost.As such,and because the total cost line slopes upward,this line depicts a variable cost.

In the Graph Below,which Depicts the Relationship Between Units Produced