What are the Fixed Costs and Variable Costs for a car wash business? Is it likely to experience...
Question:
What are the Fixed Costs and Variable Costs for a car wash business? Is it likely to experience economies of scale?
Economies of Scale:
Economies of scale are a situation in production where increasing the number of units produced results in lower average costs of production.
Answer and Explanation: 1
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View this answerFixed costs are costs that do not vary with output. In car wash businesses, fixed costs will primarily be the rents that need to be paid on the space...
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Identifying Fixed Costs & Variable Costs for Producers
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Chapter 4 / Lesson 3Learn the variable and fixed cost definitions and understand these two types of producer costs. Compare fixed vs. variable costs examples and see how they differ.
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