What type of cost does not change with the level of output in the short run?Average costVariable costFixed costMarginal cost

1. Break Down the Problem

The question is asking about the type of cost that remains constant regardless of the quantity of output produced in the short run. We need to differentiate between the types of costs mentioned: average cost, variable cost, fixed cost, and marginal cost.

2. Relevant Concepts

• Fixed Cost: Costs that do not change with the level of output. These could include rent, salaries, and equipment costs.
• Variable Cost: Costs that change with the level of output, such as raw materials and labor directly involved in production.
• Average Cost: The total cost divided by the number of units produced, which can vary as output changes.
• Marginal Cost: The additional cost incurred when producing one more unit, which can fluctuate based on production levels.

3. Analysis and Detail

1. Fixed Cost: As the definition states, these costs remain constant, irrespective of output levels. They are incurred even if production is zero.
2. Variable Cost: These costs increase as production scales up, hence not applicable to fixed output levels.
3. Average Cost: This is dependent on total fixed and variable costs but may change as output levels fluctuate.
4. Marginal Cost: This reflects the cost of producing one additional unit and varies with the level of output.

4. Verify and Summarize

Based on the definitions and explanations:

• The only cost type that does not vary with output levels in the short run is Fixed Cost.

Final Answer

Fixed cost does not change with the level of output in the short run.