Respuesta :
In year seven, marginal costs will be highest and marginal benefits will be lowest. The final few years of putting this plan into action will have the largest marginal costs and rewards for Brandberry.
What is Marginal Cost?
- The term "marginal cost" describes the rise or fall in price associated with producing or providing services to an additional consumer. It also goes by the name incremental cost.
- Marginal costs are calculated based on production costs that are direct or variable, such as labor, materials, and equipment, as opposed to fixed costs that the company would incur whether or not production is increased.
- Administrative expenses and marketing expenditures are examples of fixed costs; these costs apply regardless of the quantity generated.
- It is frequently estimated once production has reached a point of break-even where only variable or direct costs remain after covering all fixed costs have been met.
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