A pizza parlor's rent is
A)sunk in the long run.
B)fixed in the long run.
C)avoidable in the short run.
D)variable in the short run.

Question

Quizplus · Accepted Answer

Rent is a fixed cost in the long run as the pizza parlor has to pay it regardless of the level of output or sales. However, in the short run, the pizza parlor may be able to avoid or reduce its rent by negotiating with the landlord or choosing to operate from a different location.

A Pizza Parlor's Rent Is