What is the relationship between marginal cost and fixed cost?
What will be an ideal response?
There is no relationship between marginal cost and fixed cost. Marginal cost examines the change in total costs from a change in output. Fixed costs remain the same even when output changes.
Economics
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When Ford hires Ernst and Young Consulting to help Ford redesign its marketing, Ford's payment to Ernst and Young is classified as
A) an explicit cost. B) depreciation. C) an implicit cost. D) normal profit. E) economic profit.
Economics
If a firm is currently producing where MR = MC and price = $24, AVC = $22, and ATC = $26, then in the long run this firm should
a. continue to operate at a loss b. earn a positive profit c. go out of business d. increase output e. decrease price
Economics