Please Respond to this. Student 2: Thank you for the work. Truly, there are some fixed costs in a vehicle. These include the payment for registration and the insurance costs. However, I think that they can also be termed as semi variable costs since sometimes the premiums change. What do you think about that? On top of this, I agree with your description of fixed costs augurs well with Amacher & Pate’s, (2013), which says that they are those that “can’t be avoided or changed in the short run†(Section 8.2). I also agree with your views on the description of variable costs. To add to it, the costs change as the consumption changes as (Amacher & Pate, 2013), notes “variable costs increase as more output is producedâ€. They can also be semi variable or truly variable. Just to add to your variable costs, costs such as washing and pimping may be variable based on where one is.
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