To predict what your costs will be if you change your production volume, you have to find your variable costs. You can then find the variable cost per unit and estimate what your costs will be for a ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Discover the differences between fixed and variable costs and how they impact production costs. Learn to analyze these costs ...

1. If marginal product is decreasing, then average product must also be decreasing. 2. For a fixed-proportion technology, inputs cannot be substituted for each other in production. 3. The marginal ...

Every business has operating expenses — that is, the costs of running the business. These expenses can generally be classified in two ways: Fixed expenses and variable expenses. Understanding the ...

There are many inputs related to the production of goods and services, not to mention the associated production costs. These expenses can be divided into different categories. Direct costs and ...

Every business has fixed costs, which play roles in determining break-even points. Businesses also have variable costs, which make finding the actual break-even point more difficult than in ...

Opinions expressed by Entrepreneur contributors are their own. A fixed cost is one that your business incurs whether or not it makes any sales. An example is rent: It has to be paid every month ...

Get the latest news and market analysis from our in-house experts. Unlike variable cost which is subject to change depending on volume of a product or service provided, fixed costs are those which do ...