The nature of a firm's cost (fixed or variable) depends on the A. firm's revenues. B. price the firm charges for output. C. time horizon under consideration. D. explicit but not implicit costs.

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Karissa Powers

Business

13 September, 20:52

The nature of a firm's cost (fixed or variable) depends on the A. firm's revenues. B. price the firm charges for output. C. time horizon under consideration. D. explicit but not implicit costs.

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Lucian Frey · Answer 1

Option C

The nature of a firm's cost (fixed or variable) depends on the time horizon under consideration.

Explanation:

Fixed costs are autonomous of the characteristic of goods or services offered. Fixed costs (also related to as overhead costs) manage to be time-related costs including wages or periodically rental fees. Fixed costs are simply short term and do shift over time.

The long-run is enough time of all short-run information that are fixed to enhance variable. Fixed cost are hardly fixed about the amount of production for a particular period. variable costs can be changed in real-time to market need for the product.