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.
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