Distinguish between fixed costs and variable costs in distance education with the help of an example.

The total cost of an educational enterprise is made up of both fixed and variable costs. The fixed costs do not vary continuously in relation to changes in the volume of activities, although they may change if there are very significant changes in the scale of activities. The variable costs tend to increase or decrease directly with fluctuations in the scale of activity. Traditionally, most costs in the conventional educational institutions are treated as variable costs which are directly related to the number of students. And, these variable costs largely determine the total cost of production function of education by substituting a range of media for the teachers as well as students. This, therefore, changes the nature and form of the cost function in distance education.

In distance education, very significant costs are incurred in the preparation of the teaching materials like printed texts, television and radio broadcast programmes, video and audio materials, computer-based instructional programmes, and so on. The expenditure on these items is incurred before the students enter the system and irrespective of the number of the students likely to be enrolled. The development and production costs of the learning materials ___ ________ ______ ________ _________ _______.
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