Question:medium

Given below are two statements:
Statement (I): Fixed cost is increased when production is increased.
Statement (II): Price discrimination is possible under monopoly situation only.
In light of the above statements, choose the most appropriate answer from the options given below:

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By definition, Fixed Costs remain constant regardless of the volume of production in the short run.
Thus, Statement I is definitely false, which instantly leads to the correct option.
Updated On: Jul 21, 2026
  • Both Statement (I) and Statement (II) are true.
  • Both Statement (I) and Statement (II) are false.
  • Statement (I) is true but Statement (II) is false.
  • Statement (I) is false but Statement (II) is true.
Show Solution

The Correct Option is D

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