If you owned a small farm,which of the following would most likely be a fixed cost?

A) Harvest labor.
B) Hail insurance.
C) Fertilizer.
D) Seed.

Question

If you owned a small farm,which of the following would most likely be a fixed cost?A)  Harvest labor.B)  Hail insurance.C)  Fertilizer.D)  Seed.

Jean-Didier DARDÉ · Accepted Answer

Final Answer : B, Explanation :  Hail insurance is a fixed cost because it is a cost that must be paid regardless of the size of the farm or the amount of crops produced. It is a recurring expense that does not vary with changes in production levels. Harvest labor (A) is a variable cost, as it will depend on the amount of crops harvested. Fertilizer (C) and seed (D) are also variable costs as they will vary with the amount of crops planted.

If you owned a small farm,which of the following would most likely be a fixed cost?

A) Harvest labor.
B) Hail insurance.
C) Fertilizer.
D) Seed.

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