[amp_mcq option1=”Fixed cost” option2=”Variable cost” option3=”Implicit cost” option4=”Is not a part of cost” correct=”option1″]<\/p>\n
The correct answer is: A. Fixed cost<\/strong><\/p>\n Excise tax is a type of tax that is levied on a specific good or service. It is a fixed cost because it does not vary with the quantity of goods or services produced. For example, a tax on gasoline is an excise tax. The amount of tax paid per gallon of gasoline is the same regardless of how many gallons are purchased.<\/p>\n Fixed costs are costs that do not change with the level of output. They are also known as overhead costs. Examples of fixed costs include rent, insurance, and depreciation.<\/p>\n Variable costs are costs that change with the level of output. They are also known as direct costs. Examples of variable costs include labor, materials, and utilities.<\/p>\n Implicit costs are costs that do not involve a direct monetary outlay. They are also known as opportunity costs. Examples of implicit costs include the opportunity cost of capital and the opportunity cost of time.<\/p>\n Is not a part of cost is not a correct answer because excise tax is a cost.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Fixed cost” option2=”Variable cost” option3=”Implicit cost” option4=”Is not a part of cost” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-45953","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n