passwella.
Menu

JAMB Economics 1988 Question 12

Question 12

Theory of Costs and Revenue

Total fixed cost measures the cost of

  1. A.all plant and machinery
  2. B.all assets where quantity cannot be varied in the short run
  3. C.all assets upon which the firm has control
  4. D.property owned by the firm.
Show the answer and explanation

Answer: B (all assets where quantity cannot be varied in the short run)

Explanation

Fixed costs are the costs of factors whose quantity cannot be changed in the short run, whatever the output.