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 produced”. 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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