Table 5.4-Plant costs
This table shows total costs at different output levels for a given plant.
-In Table 5.4,fixed costs:
A) Are equal to $40.
B) Are equal to zero.
C) Increase as output increases.
D) Decrease as output increases.

Question

Table 5.4-Plant costs
This table shows total costs at different output levels for a given plant. 
-In Table 5.4,fixed costs:
A) Are equal to $40. 
B) Are equal to zero. 
C) Increase as output increases. 
D) Decrease as output increases.

Quizplus · Accepted Answer

Fixed costs are constant regardless of the level of output, so they do not increase or decrease with changes in production levels.

Table 5.4-Plant Costs This Table Shows Total Costs at Different Output Levels for Output