Question

Firm X and Firm Y are producing the same product at the same output level and have the same variable costs. The fixed costs of Firm X are double the fixed costs of Firm Y. Firm X and Firm Y have the same…

A: Averaged fixed cost

B: Marginal cost

C: Fixed costs

Answer 1

B: Marginal cost
due output are same & variable cost also same
so sales - variable cost=so contribution is equal
& only per unit extra production cost is same here that's called marginal cost

Answer 2

Marginal cost, now that both companies have got the same variable cost the this means that the ways used by the company to accumulate the resources may be different but of a similar cost, firm X has got a double capacity of ts fixed cost as compared to firm Y, in that case it is the marginal cost that is the same since the resources are accumulated from different geographical set ups.