Solve Question 12 12) Referring to question # 1, what is the Marginal Cost to produce 1 more unit?

Answered: 12) Referring to question # 1, what is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Solve Question 12

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12.

The cost of production is the summation of all the costs incurred while producing the commodity or service by the producer. The cost includes the fixed cost as well as the variable cost. The fixed cost is the cost that remains the same at all levels of output even at the zero levels. The variable cost occurs only when the production takes place. Thus, the total cost at zero levels would be the fixed cost, and the difference between the total cost at zero units and 1 unit will be the variable cost.

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