ECONOMICS

Detailed explanation-1: -A fixed cost is a cost that remains constant; it does not change with the output level of goods and services. It is an operating expense of a business, but it is independent of business activity. An example of fixed cost is a rent payment.

Detailed explanation-2: -Fixed costs are expenditures that do not change based on 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-3: -Marginal cost curve is not affected by the fixed cost.

Detailed explanation-4: -Fixed costs are those costs that do not vary with changes in the level of output or business activity, such as rent and salaries.

Detailed explanation-5: -Key Takeaways Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.