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15 November, 05:44

Any cost that remains unchanged as output changes represents a firm's A. opportunity cost. B. fixed cost. C. marginal cost. D. variable cost. Any cost that changes as output changes represents a firm's A. variable cost. B. fixed cost. C. overhead cost. D. sunk cost. Which of the following is most likely to be a fixed cost for a farmer

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  1. 15 November, 06:05
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    Answer:1. Fixed Cost

    ... 2. Variable cost

    3. Farmland.

    Explanation:

    Fixed cost remains fixed no matter the change in output eg cost of building, whereas a variable cost change as the level of output increase e. g raw material cost.

    The land is example of fixed cost to a famer which does not vary with the level of output.
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