Figure 3-4 The following information is available for electricity costs for the last six months of the year:

-Refer to Figure 3-4.What are the fixed costs?
A) $420
B) $100
C) $200
D) none of these

Question

Figure 3-4 The following information is available for electricity costs for the last six months of the year:
 
-Refer to Figure 3-4.What are the fixed costs?
A) $420 
B) $100 
C) $200 
D) none of these

Quizplus · Accepted Answer

Fixed costs are costs that do not change with the level of output. In this case, the fixed costs are the rent, which is $420 per month.

Figure 3-4 the Following Information Is Available for Electricity Costs