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JAMB Economics 2014 Question 21

Question 21

Theory of Costs and Revenue

Rent and administrative expenses are examples of

  1. A.fixed costs.
  2. B.variable costs.
  3. C.average fixed costs.
  4. D.average variable costs.
Show the answer and explanation

Answer: A (fixed costs.)

Explanation

Fixed costs stay the same whatever the output, like rent and office expenses.