Audrey owns a horse ranch. Her total costs are $550,000 per year, and her fixed costs are $205,000 per year. This means that her variable costs are:

Name: Audrey owns a horse ranch. Her total costs are $550,000 per year, and her fixed costs are $205,000 per year. This means that her variable costs are:
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Question

Quizplus · Accepted Answer

Fixed costs are not variable and remain constant regardless of the level of output. Therefore, Audrey's variable costs are equal to total costs minus fixed costs: $550,000 - $205,000 = $345,000.

Audrey Owns a Horse Ranch