Fixed costs
A) are greater than variable costs
B) are paid before variable costs
C) do not change with the level of output
D) do not change with the size of the firm

Question

Fixed costs​
A) ​are greater than variable costs
B) ​are paid before variable costs
C) ​do not change with the level of output
D) do not change with the size of the firm​

Quizplus · Accepted Answer

Fixed costs are expenses that do not vary with the level of output or sales revenue. These costs are incurred regardless of the volume of production or sales level. Examples of fixed costs include rent, property taxes, salaries, and insurance premiums. Therefore, the correct choice is C, fixed costs do not change with the level of output.

Fixed Costs​

Fixed Costs