GCEAgricultural ScienceFarm Management and Records2022

In a farm enterprise, fixed costs are best described as costs that

Avary directly with the level of farm output
Bare incurred only during the planting season
Cremain constant regardless of the level of productionCORRECT
Dchange with fluctuations in market prices of farm inputs
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Why the answer is C, and why the others tempt you.
Fixed costs (e.g., rent, depreciation on machinery, insurance) do not change with the level of output in the short run; they must be paid whether the farm produces a little or a lot. Variable costs, by contrast, change directly with the volume of production.
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