The costs associated with the use of fixed factors of production are:
A) total costs.
B) marginal costs.
C) variable costs.
D) fixed costs.

Question

Quizplus · Accepted Answer

The costs associated with the use of fixed factors of production are fixed costs. This is because fixed costs are expenses that do not vary with the level of production in the short run, and fixed factors of production are those inputs whose quantity cannot be changed immediately in response to a change in demand.

The Costs Associated with the Use of Fixed Factors of Production