If there are no fixed costs and variable costs are constant at $1.00 per unit over the relevant range of output,what is the marginal cost of the second unit?
A)$0
B)$0.50
C)$1
D)$2

Question

Quizplus · Accepted Answer

Since there are no fixed costs, the marginal cost is equal to the variable cost per unit. Therefore, the marginal cost of the second unit is $1.00, because the variable costs are constant at $1.00 per unit. Option C is the correct answer.

If There Are No Fixed Costs and Variable Costs Are