a
average fixed costs
b
average variable costs
c
fixed costs
d
variable costs
Explanation
Correct Option
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Discussions (6)

mimianokeyz
10 years ago
ain't variable cost on labour and capital???
fixed cost are on land, machineries, building, etc.

Mbrain
9 years ago
It's C because fixed cost do not vary with the level of production . So rent remains fixed(they are charge monthly, quarterly or yearly) even though production increases while administrative expense are salaries paid to managers, accountants either monthly or quarterly so you can see that this two expense does not vary with the level of production. There are just on their own. Have I convinced you?



