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Question
"A fixed cost is a cost that a business must pay whether it produces one product or a million. Regardless of output, the business must pay the same," amount spent to purchase a machinery is the example of ______ cost.
Options
Variable
Fixed
Prime
None of these
Solution
"A fixed cost is a cost that a business must pay whether it produces one product or a million. Regardless of output, the business must pay the same," amount spent to purchase a machinery is the example of fixed cost.
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