To: Neocon who wrote (528398 ) 1/23/2004 6:19:52 PM From: AK2004 Respond to of 769667 re: riposte ouch, that hurts :-)) re: I am trying to figure out what you are trying to say different terminology :-)Definition of Fixed Costs: In production, fixed costs are the costs that do not vary with the number of goods produced. In the short-run factors like land and rent are fixed costs, whereas raw materials used in production are not economics.about.com Unlike fixed costs, which do not change as the level of output changes, variable costs will rise and fall as the level of the variable factor (and therefore the level of output) changes. carleton.ca the simplest model is {cost}={fixed cost}+{variable cost}*{output} Company optimizes so that the price always above {variable cost} + {profit margin} but the average prices would be {variable cost}+{fixed cost}/{output}+{profit margin} If canadian government would fix the prices at {variable cost} + {profit margin} then that would still satisfy the sales criteria but below the required average. re: Again, I am not quite following your point. The only situation, baring promotion, where you sell below price is when you have excess inventory, and it is better to unload it rather than obtain no compensation at all I hope fixed and variable costs bit made that one clear re: Yes, if people are fitter, it would improve the results. But what about the obesity problem? I see no evidence of widespread fitness I disagree re: Infant mortality is just a piece of the puzzle. again there was a special attention paid to infant mortality problem in US. re: I was not aware that the focus was flexibility of coverage flexibility is important for the same reason as free trade is important. It promotes competition between doctors. Many hmos, for example, have only 1 specialist for a specific field. That creates a lot of problems due to lack of incentive for the doctors re: No, it is like saying that I paid the same for this 2.4 GHz, Pentium 4 computer, with 120 gigs of hard drive and 512 megs of RAM, as I did 5 years ago for a 400 MHZ, AMD computer with 11 gigs of hard drive and 128 megs of RAM So you're implying that you can get best possible care for the same price today as best possible care 10-15 years back? I'd say you are wrong.....