Fixed costs
A) do not exist in the long run.
B) depend on a firm's level of output.
C) are zero if a firm produces no output.
D) are total costs minus average variable costs.

Question

Quizplus · Accepted Answer

Fixed costs do not vary with the level of output and are incurred even if a firm produces nothing, but they do exist in the long run as costs like rent, salaries, and insurance. They are not dependent on the level of output, nor are they calculated as total costs minus average variable costs.

Fixed Costs