Marginal Revenue and Marginal Cost Practice Question

From Mike Moffatt, former About.com Guide

The Dictionary of Economics Terms defines fixed costs as:

In production, fixed costs are the costs that do not vary with the number of goods produced. In the short-run factors like land and rent are fixed costs, whereas raw materials used in production are not.

Thus the fixed costs are simply the costs the company has to pay before it even produces a single unit. Here we can collect that information by lookign at the total costs when quantity is 0. Here that is $9, so that is our answer for fixed costs.

There you have it: How to calculate revenue and cost measures from a chart. I hope you found it useful!

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• Marginal Revenue and Marginal Cost Practice Question
• Marginal Revenue and Marginal Cost Practice Question - Part 1
• Marginal Revenue and Marginal Cost Practice Question - Part 2
• Marginal Revenue and Marginal Cost Practice Question - Part 3
• Marginal Revenue and Marginal Cost Practice Question - Part 4
• Marginal Revenue and Marginal Cost Practice Question - Part 5

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