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Explain Whether Each of the Following Is a Fixed Cost

question 200

Essay

Explain whether each of the following is a fixed cost or a variable cost for Damian Dandridge's tattoo parlour.
a.The payment he makes to buy tattoo ink.
b.The wages he pays his employees.
c.The $500-per-month payment he makes to advertise his shop on highway billboards.
d.The lease payment he makes to the landlord who owns the building where his shop is located.
e.The payment he makes on his liability insurance policy.
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Definitions:

Prices Doubled

A situation where the cost of goods, services, or commodities increases to twice their original amount.

Relative Prices

The price of one good or service compared to another, usually considered in terms of opportunity cost.

Price Of X

The amount of money required to purchase a unit of product X in a market.

Entire Income

This term does not correspond to a specific economic concept; it might refer to total earnings or revenue of an individual or entity, but more context is needed for a precise definition. NO.

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