GCEAgricultural ScienceAgricultural Economics2019

Which of the following is an example of a fixed cost on a crop farm?

ACost of fertilizer applied per season
BWages paid to casual labourers during harvesting
CAnnual rent paid on the farmlandCORRECT
DCost of pesticides purchased for a specific planting season
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Why the answer is C, and why the others tempt you.
Fixed costs are costs that do not vary with the level of output produced. Annual rent paid on farmland remains constant regardless of whether the farmer produces a lot or a little. Fertilizer, pesticides, and casual labour wages vary with production levels and are therefore variable costs.
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