Which of the following is NOT correct in

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

Which of the following is NOT correct in respect of Total Fixed Cost?

Options:

Fixed cost is represented as a straight line parallel to Y-Axis.

TFC is positive at zero level of output.

It shows TFC remains constant at all levels of output.

None of the above

Correct Answer:

Fixed cost is represented as a straight line parallel to Y-Axis.

Explanation:

The correct answer is Option 1: Fixed cost is represented as a straight line parallel to Y-Axis.

Fixed cost is represented as a straight line parallel to X-Axis (Not Y-axis).