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MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 8 CONCEPTS OF COST2 Marks
Question
Marginal cost is always variable cost. Why?
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Answer

Marginal cost is an additional cost and additional cost cannot be fixed cost, it can be variable cost. Accordingly, the sum total of marginal costs corresponding to different units of output become TVC, ΣΜC = TVC

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