Question

Costs that are NOT affected by the quantity of a product sold are _______ costs. Examples of these costs include rent, insurance, and utilities.

Answer 1

The correct answer is fixed costs.

Step-by-step explanation:

Fixed costs are the cost that is spent on fixed inputs. They do not vary with the level of output. For instance insurance, rent, etc. They do not change with the change in the quantity of product, unlike variable costs.

The variable costs are the cost incurred on variable inputs. They vary with the level of output produced.