Final answer:
Fixed costs in a medical practice, such as rent for office space or the cost of medical equipment, do not fluctuate with the number of patients and remain constant irrespective of how many patients are seen.
Step-by-step explanation:
Expenses that do not vary in total as the number of patients seen by a medical practice grows or shrinks are known as fixed costs. These are contrasted with variable costs, which do change with the level of production or service. We can understand fixed costs by looking at them as the expenditures necessary to maintain the capacity to operate, such as rent for a medical office, which remains constant regardless of patient volume.
For instance, a healthcare practice incurs fixed costs when renting office space. Once the lease is signed, the rent does not fluctuate with the number of patients seen. Therefore, the practice's total cost structure might demonstrate significant fixed costs if it has made substantial investments in medical equipment or technology that has a constant cost over time. On the other hand, variable costs, like medical supplies that are used up as the number of patients increase, would not be considered fixed costs.