Fixed costs do not affect short-run marginal cost because they are just that- fixed. They are not dependent on quantity when it changes and does not vary directly with the level of output. Variable costs, however, do affect short-run marginal costs.
it is at its minimum
A firm's short run supply curve
The short-run marginal-cost curve eventually increases for a typical firm due to the law of diminishing returns. As production expands, each additional unit of output requires more variable inputs, which leads to increased costs per unit. Initially, firms may benefit from economies of scale, but after a certain point, the inefficiencies of adding more labor or materials without a corresponding increase in productivity cause marginal costs to rise. This results in an upward-sloping marginal-cost curve in the short run.
marginal revenue
Fixed costs do not affect short-run marginal cost because they are just that- fixed. They are not dependent on quantity when it changes and does not vary directly with the level of output. Variable costs, however, do affect short-run marginal costs.
it is at its minimum
A firm's short run supply curve
The short-run marginal-cost curve eventually increases for a typical firm due to the law of diminishing returns. As production expands, each additional unit of output requires more variable inputs, which leads to increased costs per unit. Initially, firms may benefit from economies of scale, but after a certain point, the inefficiencies of adding more labor or materials without a corresponding increase in productivity cause marginal costs to rise. This results in an upward-sloping marginal-cost curve in the short run.
A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost curve.
marginal revenue
marginal revenue
Two factors: 1) Economies of scale, which decrease the average cost per unit of a good by spreading their fixed cost between more and more units. 2) Increasing marginal costs, that increase the cost of production per unit.
what is short-run cost function
Marginal cost is
Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity
In the fhort-run production, a firm can produce and various its quantities of inputs to maximize its profit in a period of time frame. Variable cost, fixed cost, total average cost, marginal cost ....profit.