Marginal cost is directly proportional to its which cost?
Marginal cost is directly proportional to its which cost?
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Marginal cost is directly proportional to the variable cost.
Variable costs are costs that change in direct proportion to the changes in the level of output or production. Marginal cost specifically refers to the cost of producing one additional unit of output. Since marginal cost reflects the additional variable cost incurred when producing one more unit, it is directly related to the variable cost.