alleryStart learning →Fixed costs are described as the costs of the:
AFixed inputs
BVariable inputs
CMarginal inputs
DBorrowed inputs
Answer & Solution
Correct answer: A. Fixed inputs
1. Fixed and variable costs are named for the inputs behind them.
2. Fixed costs are the costs of the fixed inputs.
3. Capital is given as the example of such an input.
4. Labour, which can be adjusted, generates variable cost instead.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 7 'Production, Costs and Industry Structure', sections 7.1-7.4_
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