Final answer:
Fixed costs are those that do not vary with the number of units produced. They remain constant regardless of the company's production level or sales volume.
Step-by-step explanation:
The costs that do not change with the number of units produced are known as fixed costs. These are expenses that a company must pay regardless of its level of production or sales. Fixed costs are associated with fixed inputs, such as capital, and remain constant whether a company produces a little or a lot. For example, the rent on a factory or retail space is a fixed cost that remains consistent until the lease expires. Other forms of fixed costs include the cost of machinery, research and development, and advertising expenses. Unlike variable costs, which fluctuate with production volume, fixed costs are essentially 'sunk costs' and do not influence economic decisions regarding future production or pricing.