Fixed Cost
Definition
Costs that don't change with output in the short run — rent, machinery, salaried staff. Unavoidable even at zero production.
Example
A bakery pays $3,000/month rent whether it sells 100 loaves or 10,000.
Costs that don't change with output in the short run — rent, machinery, salaried staff. Unavoidable even at zero production.
A bakery pays $3,000/month rent whether it sells 100 loaves or 10,000.