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2019-2020 EHS Economics CFA #2

ARHIGHLIGHT X CLEAR HIGHLIGHT
3. Which term is generally associated with machines and other capital goods?

1 Answer

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Answer:

Fixed Cost

Step-by-step explanation:

The term which is usually linked or associated with the machines and the other capital goods is known as the fixed cost. It is that cost or an expense which does not change as the function of the activity of a firm or business within a particular period or year.

For example, a retailer need to pay the rent as well as the utility bill irrespective of the sales.

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