What are the Fixed Costs and Variable Costs for a car wash business? Is it likely to experience...
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
Become a Study.com member to unlock this answer! Create your accountView this answer
Fixed 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...
See full answer below.
Learn more about this topic:
Get access to this video and our entire Q&A library
Identifying Fixed Costs & Variable Costs for Producers
fromChapter 4 / Lesson 3
Learn 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.
Explore our homework questions and answers library
Browse by subject