Final answer:
The office rent described in the student's question is an example of a fixed cost, which remains the same regardless of the number of offices used. This cost will not change with the amount of business activity but will be reduced per business if shared among several entities.
Step-by-step explanation:
The question relates to the different types of costs in business economics. In the scenario described, the office rent is an example of a fixed cost, which remains constant regardless of the business output or the number of businesses sharing the facility.
Fixed costs, such as rent, do not vary with the level of production, similar to the fixed costs of a barber shop in the provided example. Inviting friends to share the office suite and its cost would simply distribute the fixed cost among more entities, reducing the cost per business.
Contrarily, variable costs are those which change depending on the business's level of output or activity, such as wages paid to workers that can vary according to how much work is required. Step costs change in large steps rather than varying directly with production; for example, adding a new production line which increases costs substantially at once. Meanwhile, mixed costs consist of both fixed and variable components.