Which of the following would be an example of a fixed cost to a firm?
A) rent for the building it occupies
B) wages for the laborers
C) the cost of raw materials
D) electricity and other fuel costs

Question

Quizplus · Accepted Answer

Rent for the building is a fixed cost because it remains constant regardless of the level of output. In contrast, the cost of raw materials, labor wages, and electricity/fuel costs can vary with the level of production and are classified as variable costs.

Which of the Following Would Be an Example of a Fixed