Fixed Costs

question 40

Multiple Choice

Fixed costs

• A) do not exist in the long run.
• B) depend on a firm's level of output.
• C) are zero if a firm produces no output.
• D) are total costs minus average variable costs.

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales volume, such as rent, salaries, and insurance.

Financial Advantage

The benefit gained by a business or investor that puts them in a better financial position compared to competitors or the market average.

French and Indian Wars

A series of military engagements between Britain and France in North America between 1688 and 1763, part of the larger struggle for colonial dominance.

Bus Maintenance

The process of keeping buses in optimal working condition through regular inspections, repairs, and necessary replacements.