Question 7
MediumOriginal questionRead the two statements and choose the correct option.
I. Integrating the marginal cost gives the total cost up to a constant, and that constant is the fixed cost.
II. The fixed cost can be found from the marginal cost function alone.
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
I: , and is the fixed cost. True.
II: differentiating removes the fixed cost, so MC alone cannot bring it back; one more fact, such as or the cost of some output, is needed. False.
- Concept
- What marginal cost can and cannot give
- Typical timeTypical
- 90 s
- Your timeYours
- —
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