Define fixed cost. Give an example.
Define fixed cost
Advertisement Remove all ads
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
Is there an error in this question or solution?
APPEARS IN
Advertisement Remove all ads
