How are fixed costs best defined?
A) as costs that vary with output
B) as the change in total cost when one more unit of output is produced
C) as costs that do not vary with output
D) as the sum of all marginal costs

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with output. Option A describes variable costs, option B describes marginal cost, and option D describes total costs which include both fixed and variable costs.

How Are Fixed Costs Best Defined