Fixed cost _________ with the change in output.

does not change

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changes

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increases

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None of these

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Solution

The correct option is A does not change
Fixed cost always remains constant in terms of value and does not change in proportion to the output. For example, rent of factory Rs.5000 remains constant irrespective of the out put produced.

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Fixed cost _________ with the change in output.

The correct option is A does not changeFixed cost always remains constant in terms of value and does not change in proportion to the output. For example, rent of factory Rs.5000 remains constant irrespective of the out put produced.

The correct option is A does not change
Fixed cost always remains constant in terms of value and does not change in proportion to the output. For example, rent of factory Rs.5000 remains constant irrespective of the out put produced.