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

The dotted line in the graph depicts fixed cost because it remains constant, regardless of the level of units produced. This means that even if the production level increases or decreases, the fixed cost will remain the same. Variable costs, on the other hand, increase or decrease with the level of production, and mixed costs are a combination of both fixed and variable costs.

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