Fixed costs are those costs that are
A)zero if the firm produces no output in the short run.
B)unchanging through time.
C)independent of the rate of output.
D)for inputs whose prices are fixed.

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not change with the level of output produced by a firm. They are incurred even if the firm produces nothing, making them independent of the rate of output.

Fixed Costs Are Those Costs That Are