Total cost in the short-run is classified into fixed costs and variable costs. Which one of the following is a variable cost?
A. Cost of raw material
B. Cost of equipment
C. Interest payment on past borrowings
D. Payment of rent on building
Answer:A
Total cost in the short-run is classified into fixed costs and variable costs. Which one of the following is a variable cost?
A. Cost of raw material B. Cost of equipment C. Interest payment on past borrowings D. Payment of rent on building