Answer on Microeconomics Question for Donna
Characteristics of Cost Structures:
Fixed Costs - Costs are unchanged across different applications. e.g. salary, rent
Variable Costs - These costs vary depending on the amount of production of goods or services. e.g. music festivals
Economies of Scale - Costs go down as the amount of good are ordered or produced.
Economies of Scope - Costs go down due to incorporating other businesses which have a direct relation to the original product.
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