Which costs do NOT vary with the amount of output a firm produces
A)average fixed costs
B)fixed costs and average fixed costs
C)marginal costs and average fixed costs
D)fixed costs

Question

Quizplus · Accepted Answer

Fixed costs do not vary with the amount of output a firm produces. Average fixed costs are calculated by dividing fixed costs by the level of output, so they also do not vary with output. However, marginal costs and average variable costs do vary with output as they depend on the level of production.

Which Costs Do NOT Vary with the Amount of Output