which of these statements regarding fixed costs are correct? (i) they do not change with the level of…

which of these statements regarding fixed costs are correct? (i) they do not change with the level of production in the short run. (ii) they include variable costs. (iii) they are present even when the firm is producing zero units. (iv) they are irrelevant to marginal costs. o (i), (ii), (iii), and (iv) o (i), (ii), and (iii) o (ii) and (iv) o (i), (iii), and (iv)

which of these statements regarding fixed costs are correct? (i) they do not change with the level of production in the short run. (ii) they include variable costs. (iii) they are present even when the firm is producing zero units. (iv) they are irrelevant to marginal costs. o (i), (ii), (iii), and (iv) o (i), (ii), and (iii) o (ii) and (iv) o (i), (iii), and (iv)

Answer

Brief Explanations:

  • (i) is correct as fixed - costs remain constant in the short - run regardless of production level.
  • (ii) is incorrect since fixed costs are distinct from variable costs.
  • (iii) is correct as fixed costs like rent are present even when production is zero.
  • (iv) is correct as marginal cost is the change in total cost from producing one more unit and is related to variable costs, not fixed costs.

Answer:

D. (i), (iii), and (iv)