Are the costs of utilities always fixed, always variable, or can they be both? Briefly explain

What will be an ideal response?

For many firms, the cost of utilities can be a mixture of fixed and variable costs. For example, a store may keep its lights on and its outdoor signs lighted day and night. The cost of the electricity to keep these lights on would, therefore, be a fixed cost because the cost does not vary with the quantity of the product sold. On the other hand, if, for example, the store is a laundromat, then the more people who use the washers and dryers, the more electricity it uses. So, that part of its electric bill is a variable cost.