A fixed cost is a cost that does not change regardless of an increase or decrease in the number of goods or services produced. A fixed cost is paid by the business regardless of business activity or not. An example of a fixed cost is rent or mortgage, regardless of the number of units produced, the mortage or rent does not change yet, still has to be paid. A marginal cost is a cost that goes up by adding just one additional unit of a product or service. Since these change with the change in production, supplies is an example of a marginal cost. If you order enough supplies for 299 goods but you decide to increase your supply to 300, supplies to make that last good are needed.
the answer is a.
by: nicholas dooley