Question 29
MediumOriginal questionAssertion (A): Marginal cost is unaffected by fixed cost.
Reason (R): Fixed cost does not change when one more unit is produced.
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Both are true, and R explains A: MC is a change in cost, and fixed cost does not change.
- Concept
- MC and fixed cost
- Typical timeTypical
- 70 s
- Your timeYours
- —
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