Which of the following would NOT be included in a producer's total fixed cost?
A) Rent
B) Property taxes
C) Insurance
D) Depreciation
E) Component parts

Question

Quizplus · Accepted Answer

Fixed costs are those that do not vary with changes in the quantity of output produced. Examples of fixed costs include rent, property taxes, insurance, and depreciation. However, component parts would typically be classified as a variable cost because the more output a producer produces, the more component parts they will require, and therefore the cost will vary with output.

Which of the Following Would NOT Be Included in a Producer's