Question

Which of the following is a fixed cost of assembling automobiles?

a. the factory itself, including land & machinery
b. electricity
c. workers whose contract allows them to be laid-off when not needed
d. steel
e. tires

Answer 1

lovely question

Answer 2

so a fixed cost is a cost that is constant whatever the quantity of goods or services produced.

Answer 3

so c. workers whose contract allows them to be laid-off when not needed
is definitely not the answer

Answer 4

It's the costs that the factory would still need to pay for even if the factory would stop assembling automobiles.

If it were to stop assembling automobiles, steel, tires, electricity are not needed. Workers are not needed, and I believe the contract means that they are not paid when not needed.

The factory will need to pay for rent of land and capital

Answer 5

A right

Answer 6

yes

Answer 7

right?

Answer 8

Si