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Which of the following are examples of long-run fixed costs:_______a. Mortgage payments b. Hourly wage costs c. Payments for production inputsd. None of the above

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Answer:

a. Mortgage payments

Step-by-step explanation:

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.

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