Answer: Marginal Cost is variable cost AS LONG AS your fixed assets can handle the output. If that additional unit forces you to acquire more assets to handle it your marginal cost can be way out of line with your average variable cost.
Marginal Cost is variable cost AS LONG AS your fixed assets can handle the output. If that additional unit forces you to acquire more assets to handle it your marginal cost can be way out of line with your average variable cost. Source: CoolInterview.com
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