Fixed costs are defined as _____
A)the total costs of a firm's production.
B)the additional costs of the last unit produced.
C)costs that increase proportionately as the quantity produced increases.
D)costs that do not vary as quantity produced increases.
E)implicit costs only.

Question

Quizplus · Accepted Answer

Fixed costs are the costs that do not vary as quantity produced increases. They remain the same regardless of how much output a firm produces. Examples of fixed costs include rent, salaries, insurance, and property taxes.

Fixed Costs Are Defined as _____