Wednesday, November 28, 2012
Supply quiz
1. diff. between fixed cost and variable cost (examples)
A fixed cost is independent on output while a variable cost is dependent on the output. An example of a fixed cost is rent, while a variable cost could be labor or electricity.
2. supply factor that could lead to more expensive prices to taco villa.
If something went wrong with the tomato distributor and the supply of tomatoes decreased so the price of tomatoes increased, then the variable cost of the ingredients will go up, causing the tacos to be more expensive.
Subscribe to:
Post Comments (Atom)
You seem to have a sense of the difference between a fixed and a variable cost. Do you know what it means to be "independent of output?" Very good example of supply (tomato example).
ReplyDelete5/5