passwella.
Menu

WAEC Economics 1996 Question 18

Question 18

Theory of Costs and Revenue

In production, factory buildings are regarded as

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

Answer: E (fixed costs)

Explanation

The cost of factory buildings does not change with output in the short run, so it is a fixed cost.