Fixed costs are best defined asA) costs that do not vary with output.B) costs that are at a minimum when output approaches the firm's capacity.C) the amount that one more unit of output adds to total costs.D) costs that decline as output increases.

Question

Fixed costs are best defined asA)  costs that do not vary with output.B)  costs that are at a minimum when output approaches the firm's capacity.C)  the amount that one more unit of output adds to total costs.D)  costs that decline as output increases.

Francelita Tsosie · Accepted Answer

Final Answer : A, Explanation :  Fixed costs are expenses that do not change with the level of production or output, such as rent or salaries.

Fixed costs are best defined as

A) costs that do not vary with output.
B) costs that are at a minimum when output approaches the firm's capacity.
C) the amount that one more unit of output adds to total costs.
D) costs that decline as output increases.

Definitions

Learning Objectives

Learning Objectives

Related questions