ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.

Detailed explanation-2: -Labor is a semi-variable cost. Semi-variable costs have elements of variable costs and fixed costs. Variable costs vary with increases or decreases in production. Fixed costs remain the same, whether production increases or decreases.

Detailed explanation-3: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.

Detailed explanation-4: -Fixed cost is a business expense that does not change regardless of the activity level of the business. Examples of fixed costs include rent, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.

Detailed explanation-5: -Fixed labor costs are any costs that aren’t expected to change over a period of time. The annual salary of an employee would be considered a fixed cost. Variable labor costs change with the production of the business.