Advertisements
Advertisements
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.
shaalaa.com
Aggregates Related to National Income - Net National Product (NNP)
Is there an error in this question or solution?