My fixed cost of selling these books online will be

My fixed cost of selling these books online will be the shipping and packaging rates for the
books. The reason for this is because no matter how many I sell, I will still have to pay the same
amount of shipping cost. Another fixed cost for selling books online will be the monthly fees that
are due to keep selling on the website. In addition, there is still payments for storage that needs to
be considered. These are fixed because the expenses will have to be paid every month no matter
how much or how little you sell.
The variable cost of selling books online will be different books and different size books. The
reason for different books having a variable cost is because some books may cost more to
produce or be more difficult to produce, resulting in a variable cost. In addition to the production
of books, advertisement will have a variable cost based on how much or how little advertisement
is done.
3-2
My book selling business can benefit for economies of scale because of the large volume of
books being sold. This large number of books will cause production to be cheaper because
production cost will be lowered because the fixed cost will be out weighed by the large amount
of output. The reason for this is because I can mass produce books at a lower price per book.
With a mass inventory of books there will be a chance of free notoriety and advertisements from
big companies. When the companies recognize my large inventory of books they might offer me
free discounts or incentives to sell on their websites like eBay, amazon, or even Chegg. With
more books being sold in bulk the manufacturing price will still stay fixed while the profits from
selling the books will go up. This will benefit me by having low production cost and higher
revenue.

Question 4-1
The fixed cost of starting a car washing businesses to consider would be the managers salary,
peoples wages, equipment, rent, and insurance for the business. The salary payment for the
managers are at a fixed rate because salary means they get paid a set amount and the amount of
time they work does not affect the amount they earn. The managers salary is also not affected by
the amount of production. The amount for renting or buying equipment will be the same as the of
these things are fixed and do not vary with that much price since there is a perfect competition
selling all the equipment. The rate of production does not change the amount paid for the
equipment making it a fixed cost. Rent for the property is a fixed rate for the month. Earning
more will not increase or decrease the price of rent and earning less won’t reduce or increase rent
either. Lastly, the insurance for the company is a fixed expense every month or every year. The