ECONOMICS

Detailed explanation-1: -Fixed costs are those costs that do not vary with changes in the level of output or business activity, such as rent and salaries. Variable costs are those costs that vary in direct proportion to changes in the level of output or business activity, such as materials, supplies, and wages.

Detailed explanation-2: -Fixed costs do not vary with the production level. Total fixed costs remain the same, within the relevant range. However, the fixed cost per unit decreases as production increases, because the same fixed costs are spread over more units.

Detailed explanation-3: -Fixed costs are costs that do not change when sales or production volumes increase or decrease. This is because they are not directly associated with manufacturing a product or delivering a service.

Detailed explanation-4: -Fixed costs remain the same regardless of production output.

Detailed explanation-5: -The correct answer to the given question is option e. Costs that do not vary as output varies. The total fixed cost is the cost which does not change with the output or production volume within a relevant range.