1. Fixed costs include all of the following EXCEPT

A) raw materials.
B) land.
C) factory.
D) salary worker.
E) business license.

2. All of the following are variable costs EXCEPT:

A) electricity.
B) wage workers.
C) office supplies.
D) raw materials.
E) all of the above are variable costs.

3. At the second unit of output, the FC and VC respectively are:

A) 0; 14.95
B) 1; 13.95
C) 2; 12.95
D) 11; 3.95
E) 12; 2.95