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WAEC Economics 2002 Question 13

Question 13

Theory of Costs and Revenue

The costs which a firm will incur whether it is in production or not, is referred to as

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

Answer: D (fixed cost.)

Explanation

Fixed costs such as rent must be paid even at zero output.