Q20 of 20 Page 3

“MC can be calculated both from total cost and total variable cost and is not affected by total fixed cost”. Discuss.

Marginal costs refer to the change in in the total costs. In the short run total cost refer to the sum of total fixed costs and total variable costs. Total fixed costs remain constant in the same period. Hence the change that the MC incurs is due to the change in the variable costs. Since fixed costs are constant the only change that occurs in TC is due to total variable costs.


If we look at the schedule below SMC can be calculated from the difference in TVC or TC the values remain the same as TFC is constant.



Source: NCERT


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