The fixed costs and variable costs term paper

Choose a business (a firm) and write about it.  Describe the business — size, what they do, annual sales if available.  This can be a local business whose owners you interview, or a
well-known business about which you will do some research.   In your paper, you should answer the following questions:

1.  How are they affected by the laws of supply and demand?  What decisions have they made that reflect those laws?

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2  What kind of competition do they face in their market (pure, monopolistic, etc.)?

3.  Do they enjoy economies of scale? Why or why not?

4.  Have they ever achieved economic profits?  What happened?

5.  What items do they spend money on that fall under fixed costs and variable costs?


Let’s be clear:  This is a paper, not a list of answers to the questions.  Also, don’t forget the obvious stuff — what do they do?  Annual sales?  Number of stores and employees?  Tell me about the business, but also demonstrate that you understand the material we’re studying.

If you don’t do the reading, and just interview the firm, you will not do well at this assignment.  All of these terms in these questions have specific meanings in economics, so read up and learn all about them.  That means reading the texts and the lecture notes.

You will find that any number of random websites such as wikipedia, investopedia,, etc., in addition to being not suitable for college-level work, also are quite often wrong.  So if that’s where you’re getting your understanding of these terms, you likely will lose points on your paper.

500-1,000 words, with sources and citations.

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