Fixed, Variable and Total Cost
Fixed, Variable and Total Cost
In the short run, a fixed cost does not change as output changes. Rent and insurance are usually fixed because they must be paid even when output is zero.
Step-by-step lessons covering AQA A Level Economics 1.4.4 Costs of production for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.