O-LevelEconomicsMicroeconomic decision makers2281/11 · May/June 2018 · Q151 Mark

Which statement about fixed costs is correct?

AThey exist only in the long run.

BThey include raw material and direct labour costs.

CThey increase at the same rate as output.

DThey must be paid even if there is no output.

✓ Correct answer

D: They must be paid even if there is no output.

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2018 Paper 1 Variant 1, question 15.

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