The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-Fixed costs are costs paid for:

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-Fixed costs are costs paid for:

Quizplus · Accepted Answer

Fixed costs are those that do not vary with the level of output. They are incurred regardless of the amount of goods or services produced. Examples include rent, salaries of permanent staff, and insurance. These costs remain constant over a period of time, irrespective of the business activity levels.

The Below Figure Shows the Various Combinations of the Goods