If the firm's fixed costs double while variable costs are unchanged, then
A) marginal cost more than doubles.
B) marginal cost doubles.
C) marginal cost remains unchanged.
D) average total cost remains unchanged.
E) average variable cost doubles.

Question

Quizplus · Accepted Answer

Marginal cost is determined by variable costs, not fixed costs, so it remains unchanged when fixed costs double.

If the Firm's Fixed Costs Double While Variable Costs Are