For a firm that wants to remain in business, which of the following costs could be avoided if it halted current production?

A) fixed costs
B) variable costs
C) sunk costs
D) implicit costs

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Variable Costs

Costs that change in proportion to the level of goods or services a company produces.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future economic decisions.