Asked by Brizeira Contreras on Jul 30, 2024
Verified
If a firm produces nothing, it still incurs its fixed costs.
Fixed Costs
Fixed costs are expenses that do not change with the level of production or business activity.
- Absorb the implications of fixed and variable costs on the shaping of cost curves in the short and long run.
Verified Answer
ZK
Zybrea KnightAug 06, 2024
Final Answer :
True
Explanation :
Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, and are incurred even if the firm produces nothing.
Learning Objectives
- Absorb the implications of fixed and variable costs on the shaping of cost curves in the short and long run.