Which of the following is regarded as fixed cost?

Assessment: WAEC SSCE - Economics - 2008 (Objective) Subject: Economics

Question 1 Report

Which of the following is regarded as fixed cost?

Answer Details
Rent on land is regarded as a fixed cost. A fixed cost is a cost that remains constant in total regardless of the level of production or sales within a certain range of activity. Rent on land is a cost that the business incurs regardless of how much they produce or sell. It is a fixed cost because it does not change based on production or sales levels, but rather on the lease agreement with the landlord.
Read lesson note on Theory Of Costs (JAMB)
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