Question

Assume baseball player salaries are fully determined before the season starts. From the point of view of the baseball team owner, player salaries during the course of the season are then:______A. variable costs.B. marginal costs.C. average costs.D. fixed costs.

Answer 1

Answer: Fixed cost.

Explanation:

Fixed cost is a cost which is budgeted for by a business, that is not affected by the changes in product/services production or sales. The fixed cost normally works within a given time frame.

The baseball team owner would calculate the baseball players salaries as a fixed cost to be paid, regardless of each player's performance.