ECONOMICS

Detailed explanation-1: -Total variable cost changes proportionately with the change in the level of production and total fixed cost remains the same irrespective of the level of production.

Detailed explanation-2: -The variable cost of production is a constant amount per unit produced. As the volume of production and output increases, variable costs will also increase. Conversely, when fewer products are produced, the variable costs associated with production will consequently decrease.

Detailed explanation-3: -Fixed costs do not vary with the production level. Total fixed costs remain the same, within the relevant range. However, the fixed cost per unit decreases as production increases, because the same fixed costs are spread over more units.

Detailed explanation-4: -A fixed cost is a cost that remains constant; it does not change with the output level of goods and services. It is an operating expense of a business, but it is independent of business activity. An example of fixed cost is a rent payment.

Detailed explanation-5: -TFC is constant at all levels of output. TVC is zero at zero level of output and with increase in output, TVC also increases. Therefore, TC also increases.