Question

The nature of a firm's cost (fixed or variable) depends on the Select one: a. firm's revenues. b. time horizon under consideration. c. price the firm charges for output. d. explicit but not implicit costs.

Answer 1

B)time horizon under consideration.

Step-by-step explanation:

firm's total cost of production can be regarded as the summation of both the fixed cost as well as the variable cost). It is all expenditures utilized in getting the needed factors of production( land, capital as well as labor)

Fixed cost known as overhead cost such as rent, insurance are expenses in the business that donor depends on the level of products(goods/service) from the business. While variable cost are cost that changes with production volume, they cover the cost of raw material used, direct labor as so on.It should be noted that The nature of a firm's cost (fixed or variable) depends on the time horizon under consideration