Question

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 1

Explanation:

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 2

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Correct Answer : (c) Interest payment on past borrowings