Respuesta :
Answer:
The correct answer is it becomes variable cost.
Explanation:
In the short run there are fixed costs and variable costs which sum up the total costs incurred. This is because in short run not all factors are variable, some factors are fixed as well. So, expenses on fixed factors come under fixed and those on variable factors come under variable costs.
In the long run though, all the factors are variable. All factors can be changed. So there are no fixed costs in the long run run. All the costs incurred on all factors become variable costs.
In the short run, The total costs are divided into fixed as well as the variable costs but in the long run, all the costs are the variable costs.
What is fixed cost and variable cost?
Fixed costs is that part of the cost which is incurred on purchasing of fixed assets, it is the type of capital expenditure that the owner occurred for its business and in short run it is fixed, and cannot be changed.
Example:
Purchase of machinery, plant, equipment, furniture, etc. are some of the examples of fixed cost.
Variable cost are those cost which are incurred on the variables of the product like cost on labors, raw materials, etc.
In the short run, all the cost of production are classified as fixed and variable cost, but in the long run, all the costs are variable, this is because:
In the short run, a producer cannot change its plant as it can change in long run because here he has a time to change its plant.
Therefore, In the long run, the cost of fire insurance would become the variable cost.
Learn more about variable cost, refer:
https://brainly.com/question/1494274
