Explore BrainMass

Explore BrainMass

    fixed cost or variable cost

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    From our discussion of cost of production and your previous commentary on the type of business you would like to operate; consider the cost of production - for example, the fixed cost and variable cost - "Do you think your firm will have more fixed cost of variable cost? Why? What are they?

    What are some potential dangers? For example, usually firms that are fixed cost heavy, have very difficult time during recessions 9such as now

    © BrainMass Inc. brainmass.com March 4, 2021, 9:25 pm ad1c9bdddf
    https://brainmass.com/economics/personal-finance-savings/fixed-cost-variable-cost-242845

    Solution Preview

    Cost of production
    From our discussion of cost of production and your previous commentary on the type of business you would like to operate; consider the cost of production - for example, the fixed cost and variable cost - "Do you think your firm will have more fixed cost of variable cost? Why? What are they?

    What are some potential dangers? For example, usually firms that are fixed cost heavy, have very difficult time during recessions 9such as now

    Any firm whether it is manufacturing, service or finance organization will have both fixed costs and variable cost. In case of firms which are newly started will have huge amount of fixed cost compared to the variable cost. Because, to start the operations, the company needs to have the factory building, office building, employees and the managerial personnel. Therefore, the firm has to pay rent to the buildings, salary to the employees and the managerial personnel irrespective of whether production has started or not. Therefore, in case of newly established concern, ...

    Solution Summary

    "Do you think your firm will have more fixed cost or variable cost? Why? What are they? are determined.

    $2.49

    ADVERTISEMENT