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To: Estimated Prophet who wrote (47170)7/15/1999 12:12:00 PM
From: Skeeter Bug  Respond to of 53903
 
ep, my understanding is that marginal cost is the extra (ie, marginal) cost to build one more widget. fixed (ie, sunk) costs are not extra as they will be there regardless of producing the unit or not producing the unit.

marginal and variable are the same thing, if i recall correctly.

the problem is that you can sell above marginal (variable) cost and still go bankrupt.