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Define Fixed Cost. Give an Example. - Economics

Define fixed cost. Give an example.

Define fixed cost

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Solution 1

Fixed costs are the sum of total expenditure incurred by the producer on the purchase or hiring of fixed factors of production such as cost of plant and machinery.

Solution 2

Fixed cost is the cost which is incurred on buying fixed factors of production. It does not vary
with the level of output.

Concept: Cost - Fixed Cost
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