Author Question: An increase in the rent that a firm pays for its factory does not increase ______. A. total cost ... (Read 71 times)

sam.t96 · **on:** Jun 29, 2018

An increase in the rent that a firm pays for its factory does not increase ______.

A. total cost
B. fixed cost
C. marginal cost
D. average fixed cost

Question 2

Explicit costs are nonmonetary costs.

Indicate whether the statement is true or false

bhavsar · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C Rent is a fixed cost, so an increase in the rent increases fixed cost, total cost, and average fixed cost. But it does not change the marginal cost because fixed costs have no influence on the marginal cost.

Answer to Question 2

FALSE