If fixed costs do not change, then marginal cost
A)also remains constant.
B)equals the change in variable cost divided by the change in output.
C)equals the change in average variable cost divided by the change in output.
D)equals the change in average fixed cost divided by the change in output.

Question

Quizplus · Accepted Answer

Marginal cost is the change in total cost that arises when the quantity produced changes by one unit. Since fixed costs do not change with output, marginal cost is determined by the change in variable cost divided by the change in output.

If Fixed Costs Do Not Change, Then Marginal Cost