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Economics · May / June 2018 · Paper 12 · Question 15

2281Firms’ costs, revenue and objectives

Which statement about fixed costs is correct?

  1. AThey exist only in the long run.
  2. BThey include raw material and direct labour costs.
  3. CThey increase at the same rate as output.
  4. DThey must be paid even if there is no output.

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Correct answer: D. They must be paid even if there is no output.

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