Identify either as a fixed or variable cost


Question: A firm's costs can be divided into fixed costs and variable costs. Identify each of the following as either a fixed or variable cost. Then, identify that same costs as being an explicit cost or an implicit cost. Give the rationale for each of your answers.

  • Labor costs
  • Materials costs
  • Entrepreneur's profit
  • Gasoline used in delivery trucks
  • Electricity costs

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Microeconomics: Identify either as a fixed or variable cost
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