Nirvana Publishing House invested in high-end printing equipment.After a year of production, the company had to double the amount of production of its newspapers and weekly magazine because of high customer demand.However, the company did not have to invest in another similar equipment to meet demands.This is an example of a _____.

Question

Quizplus · Accepted Answer

Fixed costs of production are costs that do not change with the level of output. In this case, the cost of the high-end printing equipment remains the same regardless of the increase in production volume.

Nirvana Publishing House Invested in High-End Printing Equipment