Answer to Question #248627 in Microeconomics for Sumanth

Question

assume that you are an entrepreneur of a hotel.what are the fixed and variable costs to be carried out in that business answer in Kannada

Answer 1

Variable costs vary based on the amount of output produced. Variable costs may include labor, commissions, and raw materials fixed costs on the other hand remain the same regardless of production output.

The fixed costs to be carried out by the hotel business include the following: lease and rental payments, insurance, license fees, salaries and interest payments.

The variable costs to be carried out by the hotel business include the following: food, water, equipment repairs, delivery and transport expenses sales commissions and electricity bills.