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Which of the following statement is true? -

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Question

Which of the following statement is true?

Options

  • Fixed cost curve is parallel to X-axis because it changes at all levels of output.

  • Fixed cost curve is parallel to Y-axis because it remains constant at all levels of output.

  • The Fixed cost curve is parallel to X-axis because it remains constant at all levels of output.

  • Fixed cost curve is parallel to Y-axis because it changes at all levels of output.

MCQ

Solution

The fixed cost curve is parallel to X-axis because it remains constant at all levels of output.

Explanation:

Because it remains constant at all levels of output, the fixed cost curve is parallel to the x-axis. As a result, fixed cost refers to the cost of fixed elements of production such as land and machinery.

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Aggregates Related to National Income - Net National Product (NNP)
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