Is "interest forgone" a fixed or variable cost?

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Is "interest forgone" a fixed or variable cost?

When talking in terms of equipment?

Thanks for any help.

2007-03-23 06:14:53 · 2 answers · asked by that_guy 2 in Social Science ➔ Economics

2 answers

Fixed

2007-03-23 09:11:59 · answer #1 · answered by Santa Barbara 7 · 0⤊ 0⤋

Interest is normally a fixed cost, bcoz premium rate does not vary in the short-term. I refer to time, bcoz inflation might set in,thus affectting premiun rate over the long-term

2007-03-23 21:51:26 · answer #2 · answered by She-whom-shall-not-be-named 4 · 0⤊ 0⤋