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Imagine an astronomer who has just used a spectroscope to measure the emission lines of radiation from a distant galaxy. When she looks at the emission lines of hydrogen, she notes that all of the lines measured are shifted from their expected positions toward the red end of the spectrum. Is the galaxy moving toward the astronomer or away from her?
Fixed Costs
Those costs that remain essentially at the same level, regardless of any changes in the volume of production.
Variable Cost
Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.
Charge Price
The action of setting a specific amount of money as the cost for a product or service.
Profit Margin Percentage
A financial metric that measures the amount of net income generated as a percentage of revenue.
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