Asked by Femina Asmani on Jul 05, 2024
Verified
For a typical firm, fixed costs increase in direct proportion to the increases in output.
Fixed Costs
Costs that do not change with the level of output produced by the firm, such as rent, salaries, or loan repayments.
- Acquire knowledge on the nature of cost dynamics, encompassing variable, fixed, and marginal expenses, and their correlation with production output.
Verified Answer
MT
Monique TatumJul 11, 2024
Final Answer :
False
Explanation :
Fixed costs do not vary with the level of output; they remain constant regardless of the amount of goods or services produced by a firm.
Learning Objectives
- Acquire knowledge on the nature of cost dynamics, encompassing variable, fixed, and marginal expenses, and their correlation with production output.