Asked by Monshadrik Hunter on Jul 21, 2024
Verified
If you owned a small farm, which of the following would most likely be a fixed cost?
A) harvest labor
B) hail insurance
C) fertilizer
D) seed
Fixed Cost
Any cost that in total does not change when the firm changes its output.
Harvest Labor
The workforce engaged in the process of gathering ripe crops from the fields.
- Identify and segregate expenses into fixed and variable types.
Verified Answer
NS
Noble SharmaJul 25, 2024
Final Answer :
B
Explanation :
Hail insurance is a fixed cost because it is a regular expense that does not vary with the level of production or the amount of goods produced on the farm.
Learning Objectives
- Identify and segregate expenses into fixed and variable types.