Which of the Following Is True of a Firm's Fixed

Multiple Choice

Which of the following is true of a firm's fixed costs?

A) A firm should shut down if it cannot cover its fixed costs.
B) Fixed costs are incurred regardless of the firm's level of output.
C) Fixed costs are the same as a firm's total costs.
D) Fixed costs are reduced to zero if the firm produces no output.
E) Accounting profit equals economic profit when fixed costs fall to zero.