In engineering economics, which of the following is an example of fixed costs?

Fixed costs are expenses that do not change with the level of goods or services produced by a business. These costs remain constant regardless of output levels within a relevant range.

Rental costs serve as a prime example of fixed costs because once a lease is signed, the rental payment is required at regular intervals regardless of whether the space is used to its full capacity or not. The amount owed does not fluctuate based on production levels or usage, exemplifying the concept of fixed costs.

In contrast, maintenance costs can vary depending on how much equipment is used or how often it requires service. Fuel costs are directly related to the volume of operations and are therefore variable; they increase or decrease based on production levels. Similarly, airport landing fees can be considered variable costs as they depend on the number of flights or landings, which can change based on operational levels. Thus, rental costs clearly fit the definition of fixed costs.