It always confused me. A hospital has an MRI or some other machine, and you hear they try to use it as little as possible to cut costs, because it costs them this or that amount per usage. But why would that be if they own it?
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It’s very much like your car.
Your car has fixed costs: pricetag, shipment, insurance, inspection, maintenance, cleaning. The opportunity cost of having an older model (vs a newer one).
Your car has variable costs: insurance (some policies are valid only over a certain range), repairs (parts break after miles not years), cleaning, and driving. Don‘t forget the opportunity costs as well (even when we’ll maintained and repaired, a car than run longer distance is worth much less).
The fixed cost you should indeed forget, those are sunken: the car is yours.
The variable costs is what should steer your decision if you want to drive.
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