Asked by

Criss Ramirez
on Oct 12, 2024

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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.
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Dimas AlvienOct 14, 2024
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