You open a clothing business and have to pay rent even if you do not produce any clothing. rent is a

The correct answer is:  Fixed cost.

Explanation:

A fixed cost is production expenses that do not change even if production levels go up or down. They are one of the two kinds of business expenses. The other one is variable cost, which changes according to the flow of the production levels. For instance, the lease of a building is a fixed cost because the monthly fee does not change even if the production levels do. On the other hand, raw material costs are variable costs because increasing or decreasing the production will determine the amount of raw material needed.

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