--%>

Total fixed cost

Total fixed cost:

1. Fixed cost remains constant at each level of output ie it do not change with change in quantity.
2. It can not be zero when output is zero.
3. Its curve is parallel to X-aixs
4. Example :- Rent, wages of permanent staff.

   Related Questions in Microeconomics

  • Q : Long-run equilibrium output of

    This monopolistic competitor produces Q0 units and is demonstrated: (w) earning total profit equal to 0PbQ. (x) as a price taker. (y) setting price equal to marginal revenue. (z) in long-run equilibrium.

  • Q : Value of Nonhuman Wealth The most

    The most unequally variable distributed for U.S. data would most likely be: (1) pre-tax and pre-transfer incomes 1929. (2) incomes after taxes and transfers 1975. (3) the value of nonhuman wealth 2005. (4) incomes after taxes and transfers 2005. (5) incomes before tax

  • Q : Problem on Conglomerates Can someone

    Can someone help me in finding out the precise answer from the given options. K-Mart Corporation operates the K-mart and Sears retail stores, gives financial services like insurance and the Discover card, and consists of a real estate division. Such characteristics re

  • Q : Facing a demand curve by purely

    A purely competitive firm faces a demand curve which is: (1) perfectly inelastic. (2) upward sloping. (3) perfectly elastic. (4) a vertical line. (5) downward sloping. Can anybody suggest me the proper explanation

  • Q : Demand curve of an oligopolist The

    The demand curve an oligopolist faces is kinked at the current price when other firms into the industry: (1) face unitary elasticity of demand at their current output levels.(2) will match any price cuts although not price hikes. (3)

  • Q : Illustration of complementary goods

    Prices cross elasticity of demand of two between cable TV and VCRs entails that such goods are: (1) complementary goods. (2) substitute goods. (3) negatively associated goods. (4) a luxury and a need, respectively. (5) both inferior goods.

  • Q : Entry of new firm in monopolistic

    Entry of new firms within a monopolistically competitive market: (1) is preventable. (2) may decrease the established firm’s production costs. (3) increases the established firm’s profits. (4) shrinks demand for a successful firm’s p

  • Q : Problem on Paradox of Value I have a

    I have a problem in economics on Problem on Paradox of Value. Please help me in the following question. Since diamonds are much expensive as relative to water, the: (i) Fundamental needs of people don’t comprise water. (ii) Consumer surplus from consuming the di

  • Q : Problem relating to Moral Hazard When

    When insurance companies pay back insured individuals for all the medical bills they submit: (1) Hypochondria will tend to be cured very rapidly. (2) People would tend to frequent the doctor's office more frequently. (3) An immoral choice problem would foster underuti

  • Q : Problem on imperfect competition As MRP

    As MRP < VMP in imperfect competition if firms have market power as sellers: (1) MPPL = VMP. (2) The price of output surpasses MFC. (3) Monopolistic exploitation becomes essential to attain gain. (4) Imperfect competition can’t reach the equi