Asked by
Audrey Poskey
on Nov 25, 2024Verified
Fixed costs are those costs that are
A) zero if the firm produces no output in the short run.
B) unchanging through time.
C) independent of the rate of output.
D) for inputs whose prices are fixed.
Fixed Costs
Business expenses that are not affected by changes in the level of production or sales, such as rent and salaries.
- Distinguish between fixed and variable expenses and understand their significance in corporate decision-making.
Verified Answer
PT
Learning Objectives
- Distinguish between fixed and variable expenses and understand their significance in corporate decision-making.