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

[sam.t96]

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]

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

[sam.t96]

Thanks for the timely response, appreciate it

[brbarasa]

TYSM