Please Respond to this. Student 2:
Thank you for the work.
Truly, there are some fixed costs in a vehicle. These include the payment for
registration and the insurance costs. However, I think that they can also be
termed as semi variable costs since sometimes the premiums change. What do you
think about that? On top of this, I agree with your description of fixed costs
augurs well with Amacher & Pates, (2013), which says that they are those
that can’t be avoided or changed in the short run (Section 8.2). I also agree
with your views on the description of variable costs. To add to it, the costs
change as the consumption changes as (Amacher & Pate, 2013), notes
variable costs increase as more output is produced. They can also be semi
variable or truly variable. Just to add to your variable costs, costs such as washing
and pimping may be variable based on where one is.
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