Gilbert Becker
Abstract
Abstract This article provides the economic meaning of the term fixed costs, and identifies several examples of business costs which fit this category. The concept is distinguished from other costs such as variable costs and overhead costs. The role of fixed costs in the firm's output decision and as a possible barrier to new firms wishing to enter a market are also explored.
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Abstract This article provides the economic meaning of the term fixed costs, and identifies several examples of business costs which fit this category. The concept is distinguished from other costs such as variable costs and overhead costs. The role of fixed costs in the firm's output decision and as a possible barrier to new firms wishing to enter a market are also explored.
Key concepts: Variable cost, Fixed cost, Variable (mathematics), Term (time), Meaning (existential), Industrial organization, Microeconomics, Economics