A firm's fixed cost
A)does not vary with output.
B)does not change between the short run and the long run.
C)is generally a higher percentage of its total cost at high output quantities than at low output quantities.
D)All of the above are true.

Question

Quizplus · Accepted Answer

Fixed cost is a cost that does not vary with output, meaning it remains constant regardless of the level of production. Choices B and C are incorrect because fixed cost can change between the short and long run, and its percentage of total cost can vary depending on the level of output.

A Firm's Fixed Cost