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What do you mean by fixed cost? - Economics

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Questions

What do you mean by fixed cost?

What is meant by fixed or supplementary cost?

What are fixed costs?

Very Short Answer
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Solution

Fixed cost does not change with the change in the quantity of output. The expenses on fixed factors remain unchanged irrespective of the level of output and these expenses are called fixed costs.

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Notes

Students should refer to the answer according to the question.

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Chapter 4: Cost and Revenue Analysis - Model Questions - Part B [Page 97]

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