ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of these is NOT a fixed cost?
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Rent
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Machinery Repair
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Property Taxes
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Safety Equipment
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Explanation:
Detailed explanation-1: -Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.
Detailed explanation-2: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs.
Detailed explanation-3: -Cost of machinery and equipment: If the equipment is intended for long-term use, this type of asset would be considered a fixed cost.
Detailed explanation-4: -Raw material is a variable input, so its cost is a variable cost.
There is 1 question to complete.