Question 4
EasyOriginal questionWhich of these is usually treated as a fixed cost in the short run?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Depreciation is the wear of the capital stock over time, charged whatever is produced.
Fuel, packing and casual wages rise and fall with output: variable.
- Concept
- Depreciation as a fixed cost
- Typical timeTypical
- 40 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Cost Curves, at your own pace.