Final answer:
The statement that a fixed cost never changes, even in the long run, is false. Fixed costs are steady in the short term but can change due to factors like lease renewals and depreciation over the long term.
Step-by-step explanation:
A fixed cost is characterized as an expenditure that does not change with the level of production in the short run. This includes costs like rent on factory space, machinery costs, and certain overheads such as research and development or advertising.
However, it's key to note that while fixed costs do not change with production levels, they are not necessarily permanent over the long run. Contracts can eventually be renegotiated, equipment might depreciate, and needs may change. Therefore, the assertion that a fixed cost never changes, even in the long run, is not entirely true.
The correct answer to the question 'A fixed cost is one that never changes, even in the long run.' is B) False. Fixed costs are static over the short term, but they can change when considering longer periods due to lease renewals, changes in strategic direction, or capital investments coming to an end.