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What is quasi fixed cost? What is the difference between fixed and quasi-fixed cost? Is capital, land and labour considered a quasi fixed cost for a firm? I have read that when the firm wants to take new labours, it can face a higher wage, then it is a quasi fixed cost but it seems to me that it should come under variable cost as the input cost changes with the quantity of output. Any help is appreciated.

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Quasi-fixed labour costs are typically those associated with the number of workers rather than the number of hours they work, so things like

  • recruitment costs
  • training costs

Commonly they are seen as fixed costs in the short run, but marginal costs in the long run.

Other non-labour costs which have the same short run / long run distinction can also be seen as quasi-fixed costs

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