Asked by
Criss Ramirez
on Oct 12, 2024Verified
If a firm has a fixed cost of $200,000,and a variable cost of $130,000 at an output of one,how much is marginal cost at an output of one?
A) $70,000
B) $130,000
C) $200,000
D) $270,000
E) There is insufficient information to answer the question.
Marginal Cost
The escalation in aggregate cost that comes from generating one more unit of a product or service.
Fixed Cost
Costs that do not change with the amount of goods or services produced by a business.
Variable Cost
Costs that vary directly with the level of production or volume of output.
- Apply basic cost concepts to calculate costs, including ATC, AVC, and marginal cost given specific data.
Verified Answer
DA
Learning Objectives
- Apply basic cost concepts to calculate costs, including ATC, AVC, and marginal cost given specific data.