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Ads and More, an advertising agency, recently expanded their offices as their 3 year lease came...

Ads and More, an advertising agency, recently expanded their offices as their 3 year lease came to an end. Which best describes Ads and More’s situation as its new lease was signed?

A. Ads and More was able to change some of its variable cost and is now under long term conditions.

B. Ads and More was able to change some of its fixed cost and is now under short term conditions.

C. Ads and More was able to change some of its fixed cost and is now under long term conditions.

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Answer #1

Because the lease ended and now they have to sign another lease, as a result of which the early atleast might not been play well there would be no fixed cost in this regard because the lease is permanently changing from one time period to another time period as a result of which it has entered the long-run where every cost is a variable cost and there is no fixed cost and in this regardthere is only variable cost and it is able to change its variable cost according to it all in all

Therefore, according to the given scenario (A) is the answer to this question

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