Revenues, Profits, and Price

Looking Closely at Cost and Competition

Watch this video (Revenues, Profits, and Price) to help you prepare for this week’s discussion:

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https://youtu.be/UWImfFax8Ew 

 

Reply to these prompts using the company for which you currently work, a business with which you’re familiar, or the dream business you want to start:

  • What are some key fixed and variable costs for this business? Remember, fixed costs do not change when output changes. That is, fixed costs remain even if the company is producing nothing. Variable costs increase as output increases.

 

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