An increase in volume will leave the total fixed cost unchanged.
What is Volume of production?
- The volume of production is the whole units of a item that a firm produces.
- The volume of production depends on several factors such as the inputs utilized within the production prepare and innovation.
What is Total Fixed cost ?
- Total fixed costs don't alter indeed when volume changes. Hence, an increment in volume will take off the whole fixed cost unchanged.
- Total fixed cost (TFC) is that cost which does not alter with a alter within the level of yield.
- Total cost to variable cost (TVC) is that taken a toll which changes as the level of yield changes.
- Total cost to cost (TC) is the entirety of Tota cost to settled fetched and add up to variable settled fetched. So, the TC bend is the vertical summation of TFC and TVC bends.
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