Fixed costs are:
A) costs that depend on the quantity of output produced.
B) inputs costs that stay the same price per unit.
C) costs that don't depend on the quantity of output produced.
D) costs that are negotiated to stay the same throughout the life of a contract.

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with the level of output. They are constant expenses that businesses must pay regardless of how much they produce or sell. Examples of fixed costs include rent, insurance, property taxes, and salaries of administrative staff.

Fixed Costs Are