Fixed costs
A)Increase with the level of production in the short run.
B)Can be altered in the short run but not in the long run.
C)Increase as we move from the short run to the long run.
D)Are constant in the short run.

Question

Quizplus · Accepted Answer

Fixed costs are constant in the short run because they do not vary with the level of production. They may increase in the long run if the firm decides to expand the size of the plant or purchase new equipment, but in the short run, they remain the same regardless of the level of output.

Fixed Costs