Your company incurs a cost for store rentstore rent , which, in the short run, is fixed. What happens to this cost in the long run? In the long run, the cost of store rentstore rent A. becomes a nonmonetary opportunity cost. B. becomes an accounting cost. C. remains a fixed cost. D. becomes zero. E. becomes a variable cost.

Question

Dwayne Villanueva

Business

23 May, 22:22

Your company incurs a cost for store rentstore rent , which, in the short run, is fixed. What happens to this cost in the long run? In the long run, the cost of store rentstore rent A. becomes a nonmonetary opportunity cost. B. becomes an accounting cost. C. remains a fixed cost. D. becomes zero. E. becomes a variable cost.

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Answers (1)

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Stephen Nichols · Answer 1

The correct answer is option E.

Explanation:

A company incurs the rent of a store. In the short run, this rent is considered a fixed cost. In the long run, though, this cost will be included in the variable cost. This is because, in the long run, all costs are variable, all costs can be varied.

While in the short run some costs cannot be varied because the short run is too short to vary these costs.