Costs that do not vary with the level of output produced by the firm during a time period are:
A) opportunity costs
B) implicit costs
C) fixed costs
D) historical costs
E) explicit costs

Question

Quizplus · Accepted Answer

Fixed costs are costs that a business incurs regardless of the level of production. These costs include rent, salaries of administrative staff, insurance, property taxes, etc. The term "fixed" refers to the fact that the cost is fixed in the short run and does not vary with changes in production level.

Costs That Do Not Vary with the Level of Output