Question

Q16. Cost incurred on fixed factor _____________ (Give economic term) ​

Answer 1

Answer:

Answer: AFC: The per unit cost incurred on fixed factors of production is known as average fixed cost. AFC always decreases as the firm increases the level of production. AVC: It is variable cost per unit of output produced.

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Answer 2

The cost incurred on fixed factor total fixed cost.

Explanation:

• The given question is under the concept of supply chain analysis.  

Supply chain analysis:

• Supply analysis is the process of analysis and research that helps us to understand the distribution trends, answers to market and production variables.

It takes into account the following,

1. Raw ingredients costs
2. Production costs
3. Technology costs and
4. Labor costs

Fixed cost:

• Fixed costs are a constant cost.
• The cost does not change with a decrease or increase in the number of services or goods sold or produced.
• These costs are expenses incurred by a company, regardless of any specific business activity.
• It means these types of costs are basically indirect.
• This cost does not apply to the company’s production of any services and goods.