The Fixed costshorizontalloanmachine hireoutputtotal costsupwardvariableVariable costs of any firm are made up of their fixed costs and variable costs. Fixed costshorizontalloanmachine hireoutputtotal costsupwardvariableVariable costs are those costs which do not vary with the level of output. For example, if a firm rents a factory for $200 per week, this cost is the same whether it produces 200 items or 1000 items. Other examples of fixed costs include Fixed costshorizontalloanmachine hireoutputtotal costsupwardvariableVariable costs, telephone bills, heating and Fixed costshorizontalloanmachine hireoutputtotal costsupwardvariableVariable costs repayments.
Fixed costshorizontalloanmachine hireoutputtotal costsupwardvariableVariable costs are those expenses which do not vary directly with the level of Fixed costshorizontalloanmachine hireoutputtotal costsupwardvariableVariable costs. The buying of materials to make goods will be a Fixed costshorizontalloanmachine hireoutputtotal costsupwardvariableVariable costs cost.
Wages will also increase if workers have to work longer hours to produce more, or if more labour is hired by a firm. Variable costs appear as an Fixed costshorizontalloanmachine hireoutputtotal costsupwardvariableVariable costs sloping line on a graph whereas fixed costs appear as a straight Fixed costshorizontalloanmachine hireoutputtotal costsupwardvariableVariable costs line on a graph.