Fixed costs
What Fixed costs means in Economics GCSE, as defined for AQA, Pearson Edexcel.
Definitions of Fixed costs
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Reference: AQA
Costs such as rent, machinery and management salaries that can be spread over a significantly larger number of goods or services as a firm grows.
Expenses that do not change with the level of output in the short run and must be paid even if output is zero.
Business expenses that remain constant regardless of output, such as factory rent or insurance.
Costs that do not vary directly with the level of output produced in the short run.
Costs that do not change with the level of output in the short run.
Topics that use Fixed costs
- Economies of scale (AQA GCSE)
- The importance of cost, revenue and profit for producers (AQA GCSE)
- Business costs, revenues and profit (Pearson Edexcel GCSE)
- Business economics (Pearson Edexcel GCSE)
Related terms
- Variable costs
- Break-Even Point
- Economies of scale
- Profit
- Total revenue
- Average cost
- Average revenue
- Communication problems
Using Fixed costs in the exam
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