ECONOMICS

Detailed explanation-1: -Fixed cost refers to the cost of a business expense that doesn’t change even with an increase or decrease in the number of goods and services produced or sold. Fixed costs are commonly related to recurring expenses not directly related to production, such as rent, interest payments, and insurance.

Detailed explanation-2: -Marginal cost curve is not affected by the fixed cost.

Detailed explanation-3: -Fixed cost is that cost that is dependent on time but not on the activity levels of your business. However, a higher volume of production, as well as sales, does result in better absorption of the fixed costs, which ultimately leads to an increase in your profits.

Detailed explanation-4: -Wages paid to workers are not considered as fixed costs.

Detailed explanation-5: -Fixed costs are costs that are independent of volume. 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.