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Which curve is not affected by fixed cost ?
MC Curve
TC Curve
AC Curve
AFC Curve
- Option 1: MC Curve (Marginal Cost Curve)
- Marginal cost considers the additional cost of producing one more unit of output.
- It fluctuates with changes in variable costs, not fixed costs.
- Correct Answer: The MC Curve is not affected by fixed costs.
- Option 2: TC Curve (Total Cost Curve)
- Total cost equals fixed costs plus variable costs.
- An increase in fixed costs shifts the TC curve upward.
- Option 3: AC Curve (Average Cost Curve)
- Average cost combines fixed and variable costs divided by output.
- Changes in fixed costs alter the AC curve.
- Option 4: AFC Curve (Average Fixed Cost Curve)
- Average fixed cost decreases as output increases.
- It is directly tied to fixed costs.
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