Question

describe what fixed costs and marginal costs mean to a company. choose the correct answer below. a. the number of units at which revenue just equals cost is the fixed cost. marginal cost is the constant for a particular product and does not change as more items are made. b. fixed cost is the constant for a particular product and does not change as more items are made. marginal cost is the rate of change of cost c(x) at the level of production x and is equal to the slope of the cost function at x. c. fixed cost is the rate of change of cost c(x) at the level of production x and is equal to the slope of the cost function at x. marginal cost is the constant for a particular product and does not change as more items are made. d. fixed cost is the constant for a particular product and does not change as more items are made. the number of units at which revenue just equals cost is the marginal cost.

Explanation:

Fixed costs are constant and do not vary with the level of production. Marginal cost is the rate of change of the cost function at a given production level, which is the slope of the cost - function at that point.

Answer:

B. Fixed cost is the constant for a particular product and does not change as more items are made. Marginal cost is the rate of change of cost C(x) at the level of production x and is equal to the slope of the cost function at x.