Answer to Question #178918 in Microeconomics for Josef

Question

 If TCC should convert from a two-year college to a four-year college, what would be a specific fixed cost in 

​this decision?   

Answer 1

Fixed costs include the cost of maintaining the building, and since the college will need a new building, these costs will increase. It will also require more administrative and maintenance personnel, which will also increase the fixed costs.