Explain the Difference Between a Fundamental Niche and a Realized

question 9

Essay

Explain the difference between a fundamental niche and a realized niche. Use an example to illustrate the role of competition in the establishment of each niche type.

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Definitions:

Variable Production Costs

Costs that change in proportion to the level of production activity, such as materials and labor directly involved in manufacturing.

Fixed Production Costs

Costs that do not change with the level of production or output and must be paid regardless of the volume produced.

Net Income

The total earnings of a company after subtracting all expenses and taxes from its total revenues.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the amount contributed toward covering fixed costs and generating profit.