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1.4 Production, costs and revenue

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Question 58

Extract C: Funding Community Daycare Centres

Under pressure from local authority budget cuts, many community daycare centres are struggling to remain solvent. A spokesperson noted that "regardless of the fluctuating number of elderly residents visiting each day, the fixed costs of maintaining the facilities and paying administrative salaries remain constant..." (line 8).

Define the term 'fixed costs' as referred to in Extract C (line 8).

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1.4 Production, costs and revenue Questions

  1. A Level
  2. /Economics
  3. /1.4 Production, costs and revenue