A fixed cost is a cost that increases in total as output increases and decreases in total as output decreases.

Name: A fixed cost is a cost that increases in total as output increases and decreases in total as output decreases.
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Question

Quizplus · Accepted Answer

A fixed cost remains constant regardless of the level of output. It does not increase or decrease as output changes. The cost per unit of output, however, decreases as output increases, since the fixed cost is spread over a larger number of units.

A Fixed Cost Is a Cost That Increases in Total