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Homework answers / question archive / Fixed costs of production in the short run a) cannot be reduced by producing less output
Fixed costs of production in the short run
a) cannot be reduced by producing less output.
b)are a function of the level of variable costs.
c) are low in proportion to variable costs in the short run.
d) increase as the firm produces more output.
The correct answer is a) cannot be reduced by producing less output.
Since the fixed cost of production does not depend on the level of output produced, reducing or increasing the production level does not influence it. It will remain the same irrespective of the output produced, even at zero production. Thus, the fixed cost is not affected by production decisions.
