Definition
Fixed costs are expenses that do not change with the level of production.
Why It Matters
They affect a firm’s break-even point and pricing decisions.
Example
Monthly rent paid by a business.
Malone Global University
Malone Global University
Economics Glossary – Malone Global University
Fixed costs are expenses that do not change with the level of production.
They affect a firm’s break-even point and pricing decisions.
Monthly rent paid by a business.