YAKO The shape of the Total Fixed Cost (TFC) Curve is: RSITY Select one: YAKIN O...

Question

Question

Answer 1

Answer #1

Since total fixed cost does not change with the change in the output level.

Hence with the shape of the total fixed cost (TFC) curve is a horizontal line.

Hence option d is the correct answer.

2.

When MC is greater than MR, then firm can maximize profit by reducing its production level. This is because firm profit-maximizing condition is

MR=MC

Hence corresponding to this condition quantity is determined.

Hence the given statement is false.

3.

Since total fixed cost does not change with the change in the output level.

Hence with the shape of the total fixed cost (TFC) curve is a horizontal line.

Hence option d is the correct answer.

Answer 2

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