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Rent of a factory is the fixed cost for the firm True/False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Rent of a factory is the fixed cost for the firm

True/False

Expert Solution

Conceptual knowledge

# When a firm engages in production process, it has to incur some expenditure to run the business which are the costs involved in the business.

The costs are categorised as fixed costs and variable costs.

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