Apr 21 2012

Fixed Costs

Published by at 7:14 pm under

Costs which do not change with the level of output in the short-run. Fixed costs must be paid regardless of the level of output. For example rental payment and interest payments on a bakery remain the same regardless of whether the bakery makes 10 muffins or 10,000 muffins. These costs are fixed.

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

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