Final answer:
Insurance on a computer installation is a fixed cost because it remains constant regardless of the level of output or production. Fixed costs are contrasted with variable costs, which fluctuate with production volume. Different industries experience these costs in varying patterns.
Step-by-step explanation:
Insurance on a computer installation is an example of a fixed cost. Fixed costs are expenses that do not change with the level of output produced. They are incurred by a company regardless of how much or how little is produced. Insurance premiums are typically set in advance and do not fluctuate with the number of hours the computer is in use or the amount of data it processes, making them a static expense. This distinguishes them from variable costs, which fluctuate with production volume. In the comparison of various industries, it is noted that firms with high fixed costs have low marginal costs once they are up and running, as seen with a medical advice website. Conversely, a business like leaf raking would have low fixed costs but may experience increasing marginal costs as it tries to expand services.