Fixed and Variable Costs
Fixed and Variable Costs
A fixed cost does not change when output changes in the short run. Examples include rent, insurance and a manager's salary. A variable cost changes with output, such as raw materials, packaging and hourly wages.
Step-by-step lessons on OCR GCSE Economics 2.6.4 Explain cost, revenue, profit and loss. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.