A firm's total fixed cost:

A) stays constant in the short run.
B) falls as the firm produces more output in the short run.
C) falls as the firm produces more output in the long run.
D) increases as the firm produces more output.

Total Fixed Cost

The sum of all costs that do not change with output level, including rent, salaries, and insurance.

Short Run

A period in economic analysis during which at least one input, such as plant size or capital, is fixed, limiting the ability to adjust to demand changes.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes in the economic environment.