Subject: Principles of Economics (This is a discussion post, No plagiarism)
Watch the video, Revenues, Profits, and Price, to help you prepare for this week’s discussion:
Video link: https://youtu.be/UWImfFax8Ew
Respond to following questions:
Start your discussion by responding to this question using the company for which you currently work, a business with which you’re familiar, or the dream business you want to start:
What are some key fixed and variable costs for this business? Remember, fixed costs do not change when output changes. That is, fixed costs remain even if the company is producing nothing. Variable costs increase as output increases.
Respond to Classmates post
(Please do not use my classmates post as an example for my response. My expectations is higher than how my classmate responsed to the questions)
Hello class!
I work for a company called Rent-A-Tire/Rent-A-Wheel as an account’s manager. Some of the fixed cost’s for this business are the rent and insurance for our building, the utility bills, the property taxes, and also the salaries for the employees that work here. These are all costs that remain constant as the business runs every day, so we expect these costs to remain the same. Some of the variable costs for this business are credit card fees, office supplies, postage supplies, and commission bonuses. These costs often change depending on what is needed for the company or the amount of sales an employee has put through monthly. We rarely expect these costs to remain the same. They will fluctuate depending on the output of the business.
M.I
