Which of the following is definitely NOT a quasi-fixed cost of labor?
A) unemployment insurance
B) health insurance
C) overtime pay
D) vacation pay

Question

Quizplus · Accepted Answer

Quasi-fixed costs of labor are expenses that may fluctuate in the short-run with changes in output, but are generally fixed in the long-run. Health insurance, unemployment insurance, and vacation pay are all quasi-fixed costs of labor because they are typically fixed costs that do not vary with changes in output. However, overtime pay is a variable cost of labor because it is compensation paid in addition to regular wages for additional hours worked.

Which of the Following Is Definitely NOT a Quasi-Fixed Cost