Question

Why MC is not affected by TFC?

I need this question explanation

Answer 1

TFC is the total fixed cost .

It is the cost that is fix for all output generated.

The output can be 1,2,3,4,5,6 .

It will remain fix for the short run .

aod 1 Mo 2 charge, in Total Cost (te) charge, in quending and Tea TC fix cost (TFC) t Narrable cost Cves

So from the above equation of marginal cost we can clearly see that it depends on the total cost and total cost is the sum of total fixed cost and toral variable cost .

But fxed cost is constant for every output .

So marginal cost will not be affected by the total fixed cost