ECO 100 Week 3 Discussion – Explore Cost and Competition

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  • Start
    your discussion by responding to this question using the company for
    which you currently work, a business with which you’re familiar, or the
    dream business you want to start:

    • What are some key fixed and
      variable costs for this business? Remember, fixed costs do not change
      when output changes. That is, fixed costs remain even if the company is
      producing nothing. Variable costs increase as output increases.
  • Be sure to respond to your classmate’s (Yadyra) post and share another idea for a type of cost below:

The
business of my dreams is to be a farmer. I have done alot of research
into farming and there are alot of fixed cost but the are also alot of
variable cost as well.

Running a farm requires rent or mortgage payments, property tax,
insurance, and interest payments. These fall into the category of fixed
expenses. No matter how many acres of vegetables or livestock I have or
how much I have, those fixed costs will remain the same. Fixed costs
are consistent costs that do not change from month to month.

Variable costs are costs that will change depending on the farms
consumption. Items like seeds, fertilizer, fuel and oil, electricity,
labor/employees, repairs and maintenance, water use and storage.

More variable cost would also depend on if the farm has animals or vegetation or both. I want both.

I would start off with a small farm that I could maintain with me and
a few family members but my overall dream is to have a farm-work
program that helps the communities with resources, certifications and
healthy foods.

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