Economics A-Level
Fixed and variable costs
What Fixed and variable costs means in Economics A-Level, as defined for AQA.
Definition of Fixed and variable costs
Check what you remember
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Reference: AQA
In the short run a firm incurs both, with fixed costs such as factory rent and variable costs like raw materials, while in the long run all costs are variable.
Topics that use Fixed and variable costs
- Costs of production (AQA A-Level)
Related terms
- Cost curve geometry
- Diminishing marginal returns
- Economies of scale
- Factor prices
- Factors of production
- Fixed costs
- Long-run costs
- Marginal cost
Using Fixed and variable costs in the exam
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