Fixed costs are best defined as
A)costs that will not vary with the firm's output level over some period of time.
B)costs that are paid on a yearly basis rather than a weekly or monthly basis.
C)costs of inputs that cannot be moved,such as real estate.
D)costs that will last as long as the firm exists.

Question

Quizplus · Accepted Answer

Fixed costs are those costs that do not vary with the level of output or production in the short run. These costs remain the same even if the firm produces nothing or produces a large quantity. Examples of fixed costs include rent or lease payments for a facility, salaries of permanent employees, and property taxes.

Fixed Costs Are Best Defined as