Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed irrespective of increase or decrease in output. To explain: Effect of changes in the activity level on total fixed costs and on unit fixed costs.

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Chapter 22, Problem 3Q

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Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed irrespective of increase or decrease in output.

To explain: Effect of changes in the activity level on total fixed costs and on unit fixed costs.

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