Question

Drag or select items to place them in their proper containers and select submit, managed fund index fund

A.Direct Materials
B.Production Supplies
C.Our Salaries
D.Marketing
E.Bussines Taxes

Fixed Costs =
Variable Cost =

Answer 1

Fixed costs do not change regardless of the level of production, while variable costs vary with the level of production. The sum of fixed costs and variable costs is called total costs.

Step-by-step explanation:

We can decompose costs into fixed and variable costs. Fixed costs are the costs of the fixed inputs (e.g. capital). Because fixed inputs do not change in the short run, fixed costs are expenditures that do not change regardless of the level of production. Whether you produce a great deal or a little, the fixed costs are the same.

Total costs are the sum of fixed plus variable costs. Consider the barber shop called 'The Clip Joint' in Figure 7.7. The fixed costs of operating the barber shop, including the space and equipment, are $160 per day. The variable costs are the costs of hiring barbers, which in our example is $80 per barber each day.