ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Examples of Variable Expenses Some examples of variable costs include: Food costs, such as groceries and dining out. Clothing. Gasoline.

Detailed explanation-2: -The price of a commodity such as natural gas or oil is variable because it changes almost daily. The longer the time horizon, the more time a firm has to adjust and the more costs will be fixed as opposed to variable.

Detailed explanation-3: -Variable costs are any costs that are tied to the volume of crude that a refinery processes, in contrast to fixed costs which are not volume dependent. Typically in a refinery, these include energy, catalysts, and chemicals.

Detailed explanation-4: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).