The cost of capital to create a product is a fixed cost because it is
A) directly proportional to the output level.
B) uniform throughout all firms and industries.
C) not a part of the profit calculations.
D) unaffected by consumer demand.

Question

Quizplus · Accepted Answer

Fixed costs are independent of consumer demand-for example, the cost of capital to build computer manufacturing plants or an online retail presence to take direct orders.

The Cost of Capital to Create a Product Is a Fixed