Question:

Fixed and Variable Costs in the Short-Run Question (Check My Answer)?

by Guest55829  |  earlier

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My Thoughts: I believe both are fixed costs (in the short-run), but I'd like to know for sure if I'm right.

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2 ANSWERS


  1. Option A (Variable; Fixed ) is right one.


  2. The answer is: Students are a variable cost (the number of employees can be changed in the short run by hiring and firing) while capital (the blenders and refrigerators) are considered fixed costs (the number of blenders and refrigerators cannot be changed in the short run - as stated in the beginning of the problem).

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