Fixed Costs Are

question 104

Multiple Choice

Fixed costs are

• A) costs that never change.
• B) costs that a firm incurs even when output is zero.
• C) not actually costs since they do not affect the decisions of a firm.
• D) costs that increase at a constant rate when output increases.

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Definitions:

Writing Requirement

A legal stipulation that certain contracts or agreements must be in writing to be enforceable.

East Tennessee

A geographical region in the southeastern United States, characterized by its distinct cultural and historical identity.

Writing Requirement

A legal principle that certain kinds of contracts or agreements must be recorded in written form to be legally binding and enforceable.

Confirming Memo

A written document used to reiterate agreements or transactions that have been verbally made, ensuring both parties share the same understanding.