Rent of $10,000 paid per month for renting a building is an example of a(n):
A)fixed cost.
B)variable cost.
C)opportunity cost.
D)marginal cost.

Name: Rent of $10,000 paid per month for renting a building is an example of a(n): A)fixed cost. B)variable cost. C)opportunity cost. D)marginal cost.
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Question

Quizplus · Accepted Answer

A fixed cost remains constant regardless of the level of output or activity. The rent of $10,000 paid per month is a fixed cost as it remains the same even if the business produces more or less output.

Rent of $10,000 Paid Per Month for Renting a Building