Question

how has the "gig economy" impacted variable and fixed costs for businesses. illustrate with an example.

(give answer in 6 to 7 sentences)

Answer 1

A gig economy is when there is prevalence of short-time workers in the economy as opposed to the permanent jobs. Gig economy offers freedom but it affects job security, benefits, pensions and it affects the function of an economy.

Variable cost of business are those which are changes with the production of business. As it said that gig economy disrupts the deal between the workers and businesses. For example when the business owners are unable to meet the expectations of workers, workers may go for strike and can affect the production.

In the gig economy the workers are hired on the short-term commitment. It can affect the fixed cost for business by hiring the short time workers the companies are getting refrained from larger pay role expenses, health insurance for workers, rental payment for workers (staying of workers) etc.