Question

5. Expenditure of fertilizers is called ........ cost.
(A) Fixed
(B) Marginal
(C) Total
(D) Variable​

Answer 1

Expenditure of fertilizer is called variable cost.

• The cost of items that are dependent on the requirement is termed as variable cost. For instance, the price of fertilizer, fuel, seeds are variable expenses in agriculture.

• While the cost that remain fixed like that of tools, machinery, etc are fixed expenses.
• Marginal costs imply the additional costs that occur at each level of production.
• And the total cost is the sum of all the fixed and variable expenses.