Economics A Level: What are
1. Fixed Costs
2. Variable Costs
(Note in the Long Run all Costs are Variable: they can move, change scale of Production or adapt)

Question

What are 
1. Fixed Costs
2. Variable Costs
(Note in the Long Run all Costs are Variable: they can move, change scale of Production or adapt)

go kys · Accepted Answer

1. Fixed cost do NOT change with Output in the Short Run. Have to be paid under any circumstances (Rent)
2. Variable costs DOES change with Output. Thus is influenced by output (Raw Materials)

Economics A Level

What are 1. Fixed Costs 2. Variable Costs (Note in the Long Run all Costs are Variable: they can move, change scale of Production or adapt)

1. Fixed cost do NOT change with Output in the Short Run. Have to be paid under any circumstances (Rent) 2. Variable costs DOES change with Output. Thus is influenced by output (Raw Materials)

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