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Question
Fixed cost is a cost which ______.
Options
Changes in total in proportion to changes in output.
Is partly fixed and partly variable in relation to output.
Does not change during a given period of time.
Remains same for each unit of output.
Solution
Fixed cost is a cost which Does not change during a given period of time.
Explanation:
Fixed costs stay constant overall, regardless of the degree of output or production within a given range. Examples include rent, salary, and insurance. These costs do not vary with production volume.
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