On Sep 4, 3:03*pm, Alexander DeClama wrote:
On Sep 4, 1:00*pm, Eric Chomko wrote:





On Sep 4, 1:20*am, Fred J. McCall wrote:

John Doe wrote:
:Fred J. McCall wrote:

:
: They're called 'fixed costs' because they're FIXED. *They don't change
: no matter what your flight rate is.
:
:
:I think this is an over-simplification. *If your ground infrastructure
:is setup to handle X flights per year and this requires that one shuttle
:enter maintenance phase before another one is finished, it means that
:you need 2 maintenance bases, and enough employees to process 2 shuttles
:concurrently (or even more if a 3rd shuttle is in a heavy maintenance
hase monopolising a maintenance bay and employees for months/year)
:

If they scale with flight rates then they are not fixed costs. *That's
not "over-simplification". *That's the bloody definition of fixed
costs.

What in the history of mankind has ever been fixed that was dubbed
"fixed cost"?

Even gold at $35 an ounce as a fixed cost changed. Nothing is fixed
WRT cost, Freddy. Given enough time.

Eric

Doesn't apply.

"Fixed" denotes the fact that no matter what you do, you have to pay
for x item. *If you rent an apartment, your rent is a fixed cost.

Over the term of the contract. Many apartments have hidden costs as
well.

*The
electric bill is a fixed cost, because most complex if not all require
you to have electric service to move in. *Your cable and internet
service is not a fixed cost. *Car insurance is a fixed cost by law.

Until you get into an accident and then they change your premium.
And if insurance companies have fixed costs, then why are all the
premiums different?

Further, since the cost of insurance is fixed by lawa as you state,
then what is the fixed cost?

Collision coverage is not.

Fixed costs are singular. That is, the cost is fixed for a single
transaction at a single time. Your delusion of "fixed cost" is naive
like the manner in which Fred sees it. Economies don't function on
fixed anything as we live in a changing world. To claim something is a
fixed cost is simple-minded at best. It gives the buyer the illusion
of secuirity over a single time interval related to a cost. Even tax
rates change and taxes are probable the most "fixed" anything when it
comes to money.