Is marginal cost the same as variable cost?
Understand the Problem
The question is asking whether marginal cost and variable cost are identical concepts in economics. It is seeking clarification on the relationship and differences between these two types of costs.
Answer
Marginal cost is not the same as variable cost.
Marginal cost is not the same as variable cost.
Answer for screen readers
Marginal cost is not the same as variable cost.
More Information
Marginal cost includes both variable and some fixed costs. Variable costs change with production levels, while fixed costs do not change in the short term.
Tips
One common mistake is confusing marginal cost with purely variable costs. Make sure to consider that fixed costs can also play a role.
Sources
- Marginal cost includes both variable costs and fixed costs of production - tipalti.com
- Are Marginal Costs Fixed or Variable Costs? - Investopedia - investopedia.com
- Fixed, variable, and marginal cost (video) - Khan Academy - khanacademy.org
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