Question

Draw the fixed cost curve graph and explain them.​

Answer 1

• Fixed prices square measure prices that don't amendment with an amendment in output as long because the product is at intervals the relevant variable.
• It is the price that's incurred even once the output is zero. Average {fixed cost|fixed charge|fixed prices|charge} equals total fastened costs divided by output.
• A curve that diagrammatically represents the relation between the entire fixed charge incurred by a firm within the short-term product of an honest or service and therefore the amount made.
• The reason for such straightforwardness is that the entire fixed charge is fastened. it's an equivalent in the slightest degree output levels.

1. Insurance, property taxes, and different mounted charges are 100% of the plant depreciation.
2. Raw materials of $10 and labor of $20 are spent on every soccer.
3. The total salaries of superior workers United Nations agency ar permanent workers ar $1,000,000 every year. If a replacement plant is created, such workers should be doubled.
4. Salaries of chief executive officer, CFO, and different commanding executives are $2,000,000 which can stay an equivalent though the plant size doubles.
5. Identify that of those are mounted prices and make a relevant vary chart.