Question

1. A farmer has to pay rent for a warehouse in which to store peaches that have just been
picked. The farmer has to pay this rent even during the winter, when there are no peaches in
the warehouse. Is the rent a fixed cost or a variable cost? Explain.
Type Answer here

Answer 1

I think that it is a fixed cost because a variable cost changes when the amount of supply changes. Since the farmer has to pay the same rent then it is a fixed cost.