Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars)is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. Your fixed cost is $________, and your marginal cost is $________.

Question

Quizplus · Accepted Answer

In the above equation, 300 is the fixed cost because it is a cost you incur even if Q = 0. Marginal cost is 10 because if Q increases by one unit, total cost increases by 10.

Imagine That You Are an Entrepreneur, Making Designer T-Shirts in Your