The incremental cost of producing a unit of output includes both the fixed cost and variable cost associated with production.
Added by Michele V.
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This includes costs that vary with the level of production, such as raw materials, labor, and utilities. Show more…
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it is the cost of producing one additional unit of output
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Fixed cost is the cost. which varies with the level of output.
Variable costs are sunk costs. costs that change every day. costs that change with the level of production. the change in total cost due to the production of an additional unit of output.
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