From the graph given below,identify the fixed costs line.
A) OB
B) AC
C) AD
D) AE

Name: From the graph given below,identify the fixed costs line. A) OB B) AC C) AD D) AE
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Question

From the graph given below,identify the fixed costs line. 
A) OB 
B) AC 
C) AD 
D) AE

Quizplus · Accepted Answer

Fixed costs are those which do not vary with the level of production. In the given graph, the fixed costs line is represented by AD as it is parallel to the X-axis (level of production) and does not change with the quantity produced. Therefore, the correct choice is C.

From the Graph Given Below,identify the Fixed Costs Line