In economics, a fixed cost is a cost that
A) is present only in the short run.
B) goes up as the level of output goes up.
C) goes down as the level of output goes up.
D) does not vary with the level of output.

Question

Quizplus · Accepted Answer

A fixed cost is a cost that does not vary with changes in the level of output. It remains constant regardless of how much or how little is produced. Examples of fixed costs include rent, salaries, insurance premiums, property taxes, and depreciation expenses.

In Economics, a Fixed Cost Is a Cost That