Our professor taught us about AFC!!

[cmos]

Yep he taught us about average fixed costs!
..Gotcha!

 

[fonderboy]

I lol'd.

 

[Fela Kuti]

 

[comic_relief]

Yep he taught us about average fixed costs!
..Gotcha!

mine did too!!!

comic_relief

 

[Last Man Standing]

Aren't "fixed" costs an absolute?

 

[cmos]

Nope, you're thinking about sunk costs. Once spent they cannot be recovered. Fixed cost is the cost that does not change(with the amount of output), but is present everytime a new unit is produced.

 

[DrMetallica]

fixed costs are never fixed in the long term, beyoooootch

 

[Last Man Standing]

Nope, you're thinking about sunk costs. Once spent they cannot be recovered. Fixed cost is the cost that does not change(with the amount of output), but is present everytime a new unit is produced.

So fixed costs are an absolute and unchangeable - as the name implies!