A firm's total fixed cost (TFC) is a cost
A) it is certain ("fixed") that the firm must pay.
B) that does not change as output changes.
C) that is dependent on marginal cost.
D) that is paid in only the long run.

Question

Quizplus · Accepted Answer

Total fixed cost (TFC) is a cost that does not change with the level of output produced. It remains constant regardless of the quantity of goods or services a firm produces.

A Firm's Total Fixed Cost (TFC) Is a Cost