Fixed costs are:
A)costs that don't depend on the quantity of output produced.
B)costs that depend on the quantity of output produced.
C)inputs costs that stay the same price per unit.
D)costs that are negotiated to stay the same throughout the life of a contract.

Question

Quizplus · Accepted Answer

Fixed costs refer to costs that do not depend on the quantity of output produced. These costs do not change with a change in production level in the short run. Examples of fixed costs include rent, salaries, and insurance premiums.

Fixed Costs Are