The cost equation,y = $500 + $0x,represents:
A) a variable cost.
B) a fixed cost.
C) a mixed cost.
D) a step cost.

Name: The cost equation,y = $500 + $0x,represents: A) a variable cost. B) a fixed cost. C) a mixed cost. D) a step cost.
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Question

Quizplus · Accepted Answer

The cost equation is y = $500 + $0x, which means that regardless of the level of production or output, there is a fixed cost of $500. Therefore, it represents a fixed cost.

The Cost Equation,y = $500 + $0x,represents