Microeconomics: Production and Costs · Class 11 · CBSE · Commerce Economics
In the short run, which of the following is a fixed cost for a firm?
Practice question from Microeconomics: Production and Costs (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-83110B
In the short run, which of the following is a fixed cost for a firm?
- A.Cost of raw materials
- B.Rent of the factory buildingCorrect answer
- C.Wages paid to daily-wage workers
- D.Cost of electricity used in production
Solution
Factory rent remains unchanged with changes in output in the short run, so it is a fixed cost. Raw materials, daily wages, and electricity generally vary with the level of production.
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