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).
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.