PRINCIPLES OF ECONOMICES

Answer number 1 and respond to Natasha answer. Please try to keep it simple Week 3 Discussion 1.”Production Costs” Please respond to the following: You are the owner of a fast-food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast-food restaurant, and explain the changes to each of these costs given the increased demand

2. Natasha respone to Production Costs A fast food restaurant owner will have many fixed and variable expenses. Fixed expenses can be rent, depreciation, property taxes, and interest expense. Variable costs can entail shipping fees for the additional food being delivered. You may also have an increase in salaries because you will need to have more coverage to serve the customers for that are demanding the product. The additional cost of the food being delivered to make the product. You may also have to get additional space to store the higher inventory count

 

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