Fixed Costs Are Those Costs That Are

question 57

Multiple Choice

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.

---

Definitions:

Liabilities

Financial obligations or debts that a company or individual owes.

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets, as shown on the balance sheet.

Money Market Securities

Short-term debt instruments, typically issued by governments, financial institutions, and corporations, characterized by high liquidity and low risk.

Principal Investment

An original amount of money invested, excluding any earnings or losses.