Which of the following is regarded as fixed cost?

  • A expenditure on raw materials
  • B expenditure on fuel
  • C expenditure on power
  • D rent on land

The correct answer is D. rent on land

A fixed cost is a cost that does not change with an increase or decrease in the number of goods or services. From the above options, rents paid on land is the only cost that does not change at different production levels.

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