Essay

What are the differences between short run and long run costs? Please choose a business (for ex: restaurant, donut shop, ice cream shop, school, day care center…) and answer the following questions and write a short essay about “Economic Costs of [Your business name inserts here]”.

• What are the costs of doing business? Equipment, supplies, salaries, rent, utilities, and insurance are just some of these expenses. Try to include as many costs as you can.
• What do you think are the fixed costs associated with your business?
• What do you think are the variable costs associated with your business?
• How much do you think it costs the business to add one more product? ( if it is an ice cream shop, and product is ice cream (adding one more ice cream)…)