ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed
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Variable
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Either A or B
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None of the above
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Detailed explanation-1: -Therefore, Rent is classified as fixed cost.
Detailed explanation-2: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.
Detailed explanation-3: -Fixed costs remain the same throughout a specific period. Variable costs can increase or decrease based on the output of the business. Examples of fixed costs include rent, taxes, and insurance. Examples of variable costs include credit card fees, direct labor, and commission.
Detailed explanation-4: -Fixed costs can include property taxes, rent, salaries and the cost of benefits for non-sales and management personnel.
Detailed explanation-5: -A common example of a fixed cost is rent because rent stays constant regardless of the quantity of goods or services produced. Some other examples of fixed costs include: Lease payments. Rent or mortgage payments.