ECONOMICS

Detailed explanation-1: -Answer and Explanation: Rent on a factory building is a fixed cost. Rent on a factory building is a fixed cost because the rent has to be paid even if the goods or services are not produced in the factory.

Detailed explanation-2: -Fixed costs tend to be costs that are based on time rather than the quantity produced or sold by your business. Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs.

Detailed explanation-3: -Fixed costs are expenditures that do not change regardless of the level of production, at least not in the short term. Whether you produce a lot or a little, the fixed costs are the same. One example is the rent on a factory or a retail space.

Detailed explanation-4: -A fixed cost is a cost that a business must pay whether it produces one good or a million. Regardless of output, it must pay the same amount. In other words, it is a cost that does not change even at higher levels of output. For instance, rent is an example of a fixed cost.