Advertisements
Advertisements
Question
What would happen to the following type of cost as output is increased?
Total fixed cost
Very Short Answer
Advertisements
Solution
As output increases, the total fixed cost remains constant. Fixed costs do not change with the level of output. Even if production increases or decreases, costs like rent, salaries of permanent staff, or interest on capital remain the same.
shaalaa.com
Is there an error in this question or solution?
