Fixed and Variable Costs

After reading Chapter 8 in the text and viewing the Fixed, Variable, and Marginal Cost (Links to an external site.)Links to an external site. https://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/average-costs-tutorial/v/fixed-variable-and-marginal-cost video, address the following:

First, describe several different fixed costs and variable costs associated with operating an automobile.

Next, assume that you would like to travel from Los Angeles to New York City by either car or plane. Which costs would you take into account in making your decision, fixed costs, variable costs or both? Make sure to explain your analysis in the decision that you have to make.

Guided Response: Review the discussion board posts of your classmates. Analyze the difference in your answer to your peers in response to the different costs that are discussed. Respond to at least two of your classmates. Discuss the different types of costs like fixed, variable, or both.

REQUIREMENTS

marginal cost variable cost fixed cost Microeconomics principles and policies

500 words

refs and cite

dont mind the other student responses for now

Answer Preview…………….

Costs incurred in organizations or other undertakings are mainly classified into two main categories, that is, fixed costs and variable costs. Fixed costs are expenses that do not change with the level of activities in an organization especially in the short-run while variable costs are expenses that vary with the level of activities in an organization (Amacher & Pate, 2013). If………………

APA 601 words