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ECO 204 Week 3 DQ 2 Fixed and Variable Costs

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Fixed and Variable Costs. After reading Chapter 8 in the text and viewing the required video for this week, Fixed, variable, and marginal cost, address the following in your initial post:

a. First, describe several different fixed costs and variable costs associated with operating an automobile.

b. Next, assume that you would like to travel from Los Angeles to New York City by either car or plane. Which costs would you take into account in making your decision, fixed costs, variable costs or both? Make sure to explain your analysis in the decision that you have to make.

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