Question

If a company rents a warehouse, it must pay rent for the warehouse whether it is full of inventory or completely vacant. Other examples include executives' salaries, interest expenses, depreciation, and insurance expenses. As output is increased or decreased, these _______ costs remain unchanged.

a. dependent


b. fixed


c. opportunity


d. marginal

Answer 1

b. fixed

Step-by-step explanation:

-Dependent refers to a valariable that changes when other factors change.

-Fixed cost refers to a cost that doesn't change when the amount of goods produced increases or decreases.

-Opportunity cost refers to the benefit that you would have received from the option that was not chosen.

-Marginal cost refers to the change in the cost when you produce an additional unit.

According to this definitions and as the statement refers to a cost that doesn't change, the answer is that as output is increased or decreased, these fixed costs remain unchanged.