Assume baseball player salaries are fully determined before the season starts.From the point of view of the baseball team owner,player salaries during the course of the season are then
A) variable costs.
B) marginal costs.
C) fixed costs.
D) average costs.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of production or sales. For baseball team owners, player salaries are typically set before the season begins, meaning they are not dependent on the team's level of performance. Therefore, player salaries are considered fixed costs for baseball team owners.

Assume Baseball Player Salaries Are Fully Determined Before the Season