Indicate whether the inputs below are variable (V) or fixed (F) in the short run
ID: 1200925 • Letter: I
Question
Indicate whether the inputs below are variable (V) or fixed (F) in the short run.
Input
Output
_____
Meat
in
hamburgers.
_____
Fire insurance
in
dry cleaning.
_____
Tires
in
automobiles.
_____
Property tax
in
textile production.
_____
Gasoline
in
trucking services.
_____
Depreciation
in
aircraft production.
Input
Output
_____
Meat
in
hamburgers.
_____
Fire insurance
in
dry cleaning.
_____
Tires
in
automobiles.
_____
Property tax
in
textile production.
_____
Gasoline
in
trucking services.
_____
Depreciation
in
aircraft production.
Explanation / Answer
VARIABLE COSTS- these are those costs which change with the change in level of output,
MEAT IN HAMBURGERS,TYRES IN AUTO MOBILES, GASOLINE IN TRUCKING SERVICES.
FIXED COST- these are those costs which remain same whatever the level of output is. These are present even at
zero level of output.
FIRE INSURANCE IN DRY CLEANING,PROPERTY TAX IN TEXTILE PRODUCTION, DEPRECIATION IN AIRCRAFT PRODUCTION