Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. in addition, suppose that when the firm hires 2 workers, the total cost of production is $100. when the firm hires 3 workers, the total cost of production is $120. in addition, assume that the variable cost per unit of labor is the same regardless of the number of units of labor that are hired. what is the firm's fixed cost?

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.