sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as
A) fixed cost.
B) total cost.
C) variable cost.
D) marginal cost.
E) overhead cost.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the quantity of the product that is produced and sold. These costs are incurred regardless of the level of production and include expenses such as rent, salaries, and insurance.

Sum of the Expenses of a Firm That Is Stable