Which of the following statements is TRUE with respect to total fixed costs?
A)They will increase as production decreases within the relevant range.
B)They will remain the same as production levels change within the relevant range.
C)They will decrease as production increases within the relevant range.
D)They will decrease as production decreases within the relevant range.

Question

Quizplus · Accepted Answer

Total fixed costs remain constant within the relevant range of production. This is because fixed costs do not vary with changes in production level, and are instead incurred regardless of the amount of output produced.

Which of the Following Statements Is TRUE with Respect to Total