Incremental Cost- Meaning, Analysis, Vs Marginal Cost
Since fixed costs do not vary with (depend on) changes in quantity, MC is ∆VC/∆Q. Thus if fixed cost were to double, the marginal cost MC would not be affected, and consequently, the profit-maximizing quantity and price would not change. This can be illustrated by graphing the short run total cost curve and the short-run […]
 
                        