The cost of renting the machine is classified as a fixed cost. Fixed costs are expenses that do not change with the level of output, meaning they remain constant regardless of how much dough the bakery produces.
To improve productivity, a local bakery rents a machine that mixes, partitions, and then bakes dough for a variety of pastries. The machine costs the business $2,500
per month to rent and operate, regardless of output. The cost of renting the machine is classified as _____.(1 point)
Responses
marginal cost
marginal cost
marginal revenue
marginal revenue
a fixed cost
a fixed cost
a variable cost
1 answer