A Fixed Cost Is

Multiple Choice

A fixed cost is:

A) the cost of any input whose per-unit price has been fixed, whether by long-term contract or by some similar means.
B) a cost whose increases are exactly proportional to increases in output.
C) any component included in average cost which enters in AC as the same fixed per-unit amount, no matter what the level of plant output may be.
D) a cost which the firm would incur even if its output were zero.
E) none of the above.