Which of the following is true of fixed costs?
A)Fixed costs can be changed,but it is extremely costly to do so in a short period of time.
B)Fixed costs cannot be changed in the long-run.
C)Fixed costs can be changed,but only in the short run.
D)Fixed costs cannot be changed in the short-run,because most firms experience constant returns to scale in the short run.

Question

Quizplus · Accepted Answer

Fixed costs are those costs that do not vary with the level of output in the short term. While they are generally considered "fixed," they can indeed be changed, but doing so often involves significant expense or effort, especially if the change needs to happen quickly. This is because fixed costs are typically associated with investments in assets, facilities, or contracts that are not easily or inexpensively altered in the short term.

Which of the Following Is True of Fixed Costs