Oh yeah! I kept thinking that chalet cost is always fixed but in
actual fact in the long run, a chalet would become more price
elastic due to the presence of more substitutes, hence chalet cost
will change (be lowered). In this case, it is a variable cost. Am I
right? Please correct me if I'm wrong. haha thanks!
Fixed cost does not mean the price would not change. Price would
always change. Fixed cost is a relative term. It needs to the
compared with something. For example, the cost of the chalet
(assuming that there is only one chalet house) is still the same no
matter how many people go the the chalet.
Only when the cost of the chalet varies with the number of
people going to the chalet (like maybe, the more people the more
chalet houses), then it could be considered as a variable
cost.