A firm's total fixed cost:
A)stays constant in the short run.
B)falls as the firm produces more output in the short run.
C)falls as the firm produces more output in the long run.
D)increases as the firm produces more output.

Question

Quizplus · Accepted Answer

Total fixed cost remains constant in the short run, regardless of the level of output. This is because fixed costs are costs that do not vary with the level of output.

A Firm's Total Fixed Cost