Managerial Economics.

In Chapter 7,the authors refine their introduction to fixed costs (provided in Chapter 3) by noting that the definition of fixed costs depends on our time horizon.Some costs that are fixed in a short time horizon (e.g.,over the next year)may become variable costs over a longer period of time (e.g.,five years or more).For example,your firm may have a three year employment contract with the general sales manager.Until the current contract expires, the manager's salary may be a fixed cost for the firm, but this expense becomes variable beyond the term of the current contract.This time-dependent definition of fixed costs also applies to many other expenses, including facilities, equipment, and technology.

Please provide an example from your industry of a short-run fixed cost that becomes variable in the long run.Does this refined definition of fixed costs mean that managers are not subject to the fixed-cost fallacy when making long-run decisions for their firm?