If the price of a fixed factor of production increases by 50 percent, what effect would this have on the marginal-cost schedule facing a firm?

Name: If the price of a fixed factor of production increases by 50 percent, what effect would this have on the marginal-cost schedule facing a firm?
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Question

Quizplus · Accepted Answer

Fixed costs do not affect marginal cost because marginal cost is concerned with the cost of producing one more unit of a good or service, which involves variable costs, not fixed costs.

If the Price of a Fixed Factor of Production Increases