The Mountain Ski Lodge spent $100,000 marketing and advertising its new ski trails and on-site spa. The money used for marketing and advertising can be referred to as:
A) variable costs.
B) fixed costs.
C) ratio costs.
D) diseconomies of scale.
E) economies of scale.

Question

Quizplus · Accepted Answer

The money spent on marketing and advertising is a fixed cost because it does not vary with the number of guests utilizing the ski trails or spa.

The Mountain Ski Lodge Spent $100,000 Marketing and Advertising Its