QuestionMay 25, 2025

Bill owns "Bill's Home of Blues" a store that specializes in selling CDs and DVDs of blues musicians of the 1960s and 1970s. Bill took out a loan from his bank to pay for his store and its initial inventory.Bill pays the bank 900 per week for his loan. The 900 bank payment is a short-run implicit cost. is a long-run implicit cost. is a fixed cost. is a variable cost.

Bill owns "Bill's Home of Blues" a store that specializes in selling CDs and DVDs of blues musicians of the 1960s and 1970s. Bill took out a loan from his bank to pay for his store and its initial inventory.Bill pays the bank 900 per week for his loan. The 900 bank payment is a short-run implicit cost. is a long-run implicit cost. is a fixed cost. is a variable cost.
Bill owns "Bill's Home of Blues" a store that specializes in
selling CDs and DVDs of blues musicians of the 1960s and
1970s. Bill took out a loan from his bank to pay for his store
and its initial inventory.Bill pays the bank 900 per week
for his loan. The 900 bank payment
is a short-run implicit cost.
is a long-run implicit cost.
is a fixed cost.
is a variable cost.

Solution
4.7(284 votes)

Answer

is a fixed cost. Explanation 1. Identify the type of cost Fixed costs are expenses that do not change with the level of output or sales. Variable costs fluctuate with production levels. 2. Determine if the payment is fixed or variable Bill's \900 weekly payment to the bank does not change based on his store's sales or inventory levels, indicating it is a fixed cost.

Explanation

1. Identify the type of cost<br /> Fixed costs are expenses that do not change with the level of output or sales. Variable costs fluctuate with production levels.<br /><br />2. Determine if the payment is fixed or variable<br /> Bill's $\$900$ weekly payment to the bank does not change based on his store's sales or inventory levels, indicating it is a fixed cost.
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