Answer to Question #64472 in Microeconomics for Carla

Question

If there is an increase in variable costs are marginal costs affected?

Answer 1

Consequently, the increase in variable costs, marginal costs are also rising. This is due to the fact that the difference variable cost increases with a gradual increase in the number of manufactured goods. And so we have the formula
MC=(VC1-VC)/(Q1-Q).