______ is the cost of inputs whose use does not vary as the firm's output changes.
A) Sunk cost
B) Fixed cost
C) Total cost
D) Explicit cost

Question

Quizplus · Accepted Answer

Fixed cost is the cost of inputs that do not vary with changes in the output of the firm. It is a set cost that the firm incurs regardless of the level of production. Sunk cost, on the other hand, is a cost that has been incurred and cannot be recovered, while total cost is the sum of fixed and variable costs. Explicit cost refers to the direct and observable expenses incurred by the firm.

______ Is the Cost of Inputs Whose Use Does Not