A fixed cost is a cost that does not increase in total as output increases and does not decrease in total as output decreases.

Name: A fixed cost is a cost that does not increase in total as output increases and does not decrease in total as output decreases.
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Question

Quizplus · Accepted Answer

Fixed costs are independent of the level of output and remain constant irrespective of whether the output is high or low. Examples of fixed costs include rent, salaries, property taxes, and insurance premiums.

A Fixed Cost Is a Cost That Does Not Increase