Which of the following is an example of a fixed cost?
A) Paper used in the manufacture of textbooks.
B) Property taxes paid by a firm to a large city.
C) The wages of part-time workers who are paid $8 per hour.
D) Gasoline consumed by salespersons' cars.
E) Surgical supplies used in a hospital's operating room.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of output. Property taxes paid by a firm to a large city are an example of a fixed cost because they remain constant regardless of how much the firm produces or sells.

Which of the Following Is an Example of a Fixed