Question

A building is an example of a _____ because it is a cost that does not change as output changes. fixed cost variable cost market share

Answer 1

The answer to this question is "Fixed Cost." this is because it doesn't change so it's fixed on one price!

Answer 2

A building is an example of a fixed cost because it is a cost that does not change as output changes.

Fixed costs are one category of business expenses. The other category are vaiable costs or expenses.Fixed expenses or costs are those that do not fluctuate with changes in production level or sales volume. Examples are: expenses as rent, insurance, dues and subscriptions, equipment leases, payments on loans...