Which of the costs below is an example of a fixed cost in the short run?

Question

Quizplus · Accepted Answer

A fixed cost is a cost that does not vary with changes in the quantity of output produced in the short run, in this case, the 3-year lease on retail space is a fixed cost as it will remain the same regardless of the quantity of clothing sold in that space. The other options (A, B, and C) are variable costs as they will increase or decrease with changes in the quantity of output produced.

Which of the Costs Below Is an Example of a Fixed