Fixed costs of production in the short run rev: 06_26_2018 Multiple Choice are a function of the level of variable costs. are low in proportion to variable costs in the short run. cannot be reduced by producing less output. increase as the firm produces more output.

In the case of the fixed cost of production that lies in the short run does not decreased while generating the lower output as the fixed cost are considered to be the independent on the other hand the variable cost changes with the output. Moreover, the total cost could be divided into the fixed cost where the firm could incurred prior generating an output

So the above statement should be considered

Parrain Parrain · Answer 2 · 2021-11-25T12:36:36+01:00

When a firm is operating in the short run, their fixed costs cannot be reduced by producing less output.

Fixed costs:

Are constant in the short run
Do not change in relation to production volume

Fixed costs such as administrative salaries will remain the same throughout the production process and will not change regardless of the production volume of goods and services.

In conclusion, reducing output produced will not affect fixed costs.

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