Bob gives up his factory job in order to open a bait-and-tackle shop. The earnings from his factory job represent:

A) the hourly wage paid by the shop

B) the marginal cost of running the shop

C) the average cost of running the shop

D) a fixed cost that can vary in the long run

E) an implicit cost of opening the shop

Question

Bob gives up his factory job in order to open a bait-and-tackle shop. The earnings from his factory job represent:

A) the hourly wage paid by the shop

B) the marginal cost of running the shop

C) the average cost of running the shop

D) a fixed cost that can vary in the long run

E) an implicit cost of opening the shop

anonymous · Answer

D) A fixed cost that can vary in the long run.