Question

Butterflies and Blooms, a new florist in town, is attempting to maximize profits but knows the company cannot charge too much for its bouquets in this market. As the company explores locations, the florist notes rent, property taxes, and parking. These are examples of ________ costs.

A) acquisition
B) procurement
C) fixed
D) variable
E) marginal

Answer 1

Answer: (C) Fixed

Step-by-step explanation:

The fixed cost is the term that refers to the business cost or the expenses that is specifically paid by an organization for perform the various types of activities.

The fixed cost cannot be decrease or also increase in the product amount and it is opposite to the variable cost.

According to the given question, the given example is refers to the fixed costs as it maximize the profit but does change the amount of any products and the services.

Therefore, Option (C) is correct answer.