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SOLVED:Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance premiums, wage payments, depreciation and obsolescence charges, sales taxes, and rental payments on Ieased office machinery. "There are no fixed costs in the long run; all costs are variable."
SOLVED:Why can the distinction between fixed costs and variable c…
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a firms fixed cost a does not vary with output b does not change between the short run and the long run c is generally a higher percentage of its total cost at high output quantities than at 19272
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