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You are doing field work on a small,uninhabited island.You are supplementing your food supply with fish that live in some of the ponds on the island.You catch a brightly colored fish with red and black stripes,filet it,pan fry it,and spit out your first bite because it tastes like it had been soaked in urine.Back at camp,your guide from a nearby island is pan frying fish with red and black stripes he caught in an adjacent pond.When you tell him not to eat those,he smiles and says these are the best-tasting fish in the whole island chain! You look closer and see the pattern of the red and black stripes is just a little different from the fish you caught.What principle of ecology have you just experienced firsthand?
Fixed Cost
Fixed cost refers to a cost that does not change with the level of output or sales in the short term, such as rent, salaries, or loan payments.
Sunk Cost
Costs that have already been incurred and cannot be recovered or altered.
Incremental Revenues
Additional income received from a particular action or decision, beyond what would have been received without it.
Direct Material
Raw materials that are directly traceable and allocable to the production of goods or services.
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