Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 9 - Businesses and the Costs of Production - Discussion Questions: 4

Answer

The answer is below.

Work Step by Step

Some costs do not change based on the total output. For instance, when I buy a factory, I am going to have to heat the factory regardless of whether or not I am making anything. Thus, there are variable costs that change based on how much I make, and there are fixed costs, which are constant.
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