CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

In the short run, the cost that is independent of the amount of output produced is called ______.

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.
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