Which of the following is an example of a fixed cost?
A) Paper used in the manufacture of textbooks.
B) Property taxes paid by a firm to the City of Los Angeles.
C) The wages of part-time workers who are paid $8 per hour.
D) Gasoline consumed by salespersons' cars.
E) Surgical supplies used in a hospital's operating room.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not vary with the level of output or production. Property taxes are a fixed cost because they must be paid regardless of how much the firm produces or sells.

Which of the Following Is an Example of a Fixed