Which of the following would NOT be considered a fixed cost of production?
A. interest payments on a loan
B. insurance payments on plant and equipment
C. the opportunity cost of capital
D. wages paid to labor
Answer: D
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Suppose there was a substantial increase in political instability in the rest of the world. What would be the effects on the U.S. current account? Explain
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The capabilities approach allows us to focus on issues of:
A. poverty, inequality, and human development. B. income, poverty, and economic growth. C. human development, capital development, and technological progress. D. personal happiness, individual pleasure, and pain avoidance.
The central question in economics is how to
a. make the best use of scarce resources. b. use government planning agencies. c. induce people to want less. d. increase human knowledge.