1. A fixed cost is the cost that a company has to pay no matter what such as rent or cost of ingredients for a restaurant and it is independent of the output. A variable cost is dependent of output. the variable cost are expenses that change with the proportion of what the business sells.
2. Describe a supply factor that could lead to more expensive prices for taco villa
If the input costs go up for the ingredients of the restaurant. For example, if the cost of lettuce goes up because there is less lettuce being grown, the cost of the taco will be higher because the ingredients will cost more for the restaurant. This connects to the first question that states that variable costs are dependent of output.
Rent is independent of output but ingredients are not. For example, a company needs more lettuce when more tacos are produced. What is an example of a variable cost? Your lettuce example makes sense.
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