A fixed cost within the relevant range
A) increases in total as output decreases.
B) does not change in total as output changes.
C) decreases in total as output increases.
D) All of these are correct.

Question

Quizplus · Accepted Answer

Fixed costs are costs that remain constant within the relevant range, regardless of changes in the level of output. Therefore, they do not change in total as output changes. Option A is incorrect as fixed cost does not increase in total as output decreases, and option C is incorrect as fixed cost does not decrease in total as output increases. Option D is incorrect because only option B is correct.

A Fixed Cost Within the Relevant Range