Costs that do not vary with production or sales levels are called ?
Correct answer: A. fixed costs
- A. fixed costs
- B. variable costs
- C. standard costs
- D. independent costs
Explanation
Fixed costs remain unchanged as production or sales volume changes within the relevant operating range, such as rent. Variable costs move with output, making them the opposite category.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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