When Graphing Total Fixed Costs, the Fixed Cost Per Unit

question 155

True/False

When graphing total fixed costs, the fixed cost per unit is the slope of the fixed cost line.

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Definitions:

Average Cost

The total cost of production divided by the number of units produced, representing the cost per unit.

Total Cost

The complete sum of all expenses incurred in the production and delivery of goods or services.

Marginal Cost

The additional expense faced by a business when its production volume is increased by a single unit.

Total Variable Cost

The aggregate of costs that vary in relation to the volume of output or activity, such as materials and labor expenses.