John Doe wrote:

:Fred J. McCall wrote:
:
: Then it's not a fixed cost.
:
:Say you are an airport with 12 gates/jetways. You need to pay $X per
:year to Jetway Corp for maintenance of the jetways. Those are fixed
:costs associated with your ground based infrastructure. And you want 12
:gates because you want the ability to accept 12 flights simultaneously.
:
:But years later, when you accept that Podunk Airport will never have 12
:flighst land at the same time, you can decide to let go of 8 gates and
nly keep 4. You reduce your infrastructure and also reduce the costs of
:maintaining those jetways, so from then on, your fixed costs are lower
:because you have a smaller infrastructure to maintain.
:

Capital costs and fixed costs are not necessarily the same thing. You
seem to be assuming that they are.

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"Ignorance is preferable to error, and he is less remote from the
truth who believes nothing than he who believes what is wrong."
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