“MC can be calculated both from total cost and total variable cos… - Vidyadip

Question

“MC can be calculated both from total cost and total variable cost and is not affected by total fixed cost”. Discuss.

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Answer

The given statement is correct. MC is not at all affected by total fixed cost (TFC). MC is addition to TC or TVC when one more unit of output is produced. As TFC remains same with the increase in output, MC is independent of fixed cost and is affected just by change in variable costs.

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