- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 3. Marginal Revenue, Marginal Cost and Profit Maximization
CFA Practice Question
In the short run, the cost that is independent of the amount of output produced is called ______.
B. fixed cost
C. variable cost
A. implicit cost
B. fixed cost
C. variable cost
Correct Answer: B
The cost of the production facility, which is independent of the amount of output produced, is called fixed cost.
User Contributed Comments 1
| User | Comment |
|---|---|
| MathLoser | In the short run, there is time required to build or buy new plant equipment. It will stay fixed for a while. In the long run, all inputs are variable. |