Assertion (A): The TFC curve is a horizontal straight line.
Reason (R): Fixed cost does not change with output.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true, and a cost that stays the same at every output is drawn as a horizontal line: R explains A.

Concept: Shape of TFC
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsFixed and variable cost

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Ten questions from Cost Curves, at your own pace.

Assertion (A): The TFC curve is a horizontal straight line.Reason (R): Fixed cost does not change with output.

Explanation

Assertion (A): The TFC curve is a horizontal straight line.
Reason (R): Fixed cost does not change with output.