The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as
A)fixed cost.
B)total cost.
C)variable cost.
D)marginal cost.
E)overhead cost.

Question

Quizplus · Accepted Answer

The sum of expenses that do not change with the quantity of the product produced and sold is referred to as fixed cost. This includes expenses such as rent, salaries, and insurance which do not vary with the level of production.

The Sum of the Expenses of a Firm That Is