How Are Fixed Costs Represented Graphically

question 57

Multiple Choice

How are fixed costs represented graphically?

• A)A horizontal line, staying the same irrespective of the level of activity
• B)Starting at zero and increasing as a straight line as activity increases
• C)Starting at a given point and increasing as a straight line as activity increases
• D)The intersection of the total costs and total revenue lines

---

Definitions:

Volume Of Sales

The total quantity of goods or services sold within a specific time frame.

Price Falls

A situation where the price of goods or services decreases in the market due to various factors like excess supply, reduced demand, or external economic conditions.

Consumer Considers

Factors or elements that consumers take into account when making purchasing decisions.

Value

The importance, worth, or usefulness of something, often in terms of monetary worth.