Machine-translated by Google. Questions are authored in English.
Top

Discussion

The marginal fixed cost of production is always :

  • A.Zero
  • B.Rising
  • C.Falling
  • D.Initially rising and then falling.

Answer: A

The marginal fixed cost is always zero.

Marginal cost is the change in total cost from producing one more unit. Fixed costs, such as rent, insurance and the salaries of permanent staff, stay the same whatever the output in the short run, so producing another unit adds nothing to them:

\[ MFC = \frac{\Delta TFC}{\Delta Q} = \frac{0}{\Delta Q} = 0 \]

That is why marginal cost depends only on variable costs. A fixed cost that rose, fell or rose and then fell with output would not be fixed.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.