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Fixed costs are time-associated i.e. they continue to be constant for a time frame. Fixed costs are also called overhead costs, period prices or supplementary prices. Fixed prices stay constant for a specific period. These costs are often time-associated, such because the month-to-month salaries or the rent. Economic profit is completely different from the general business term ‘revenue’. The general assumption is that firms are producing goods to maximize income. This price advantage is established in the truth that as output will increase, fastened costs are spread over a larger […]