In the formula, Total cost = Fixed cost + (Variable rate x Output), fixed cost refers to the
A) slope parameter or b
B) intercept parameter or a
C) dependent variable
D) independent variable

Question

Quizplus · Accepted Answer

Fixed cost corresponds to the intercept parameter or constant term (a) in the formula. It represents the cost that is incurred regardless of the level of output.

In the Formula, Total Cost = Fixed Cost + (Variable