Marginal cost can be calculated as:

Question

Quizplus · Accepted Answer

Marginal cost is defined as the increase in total cost that arises from an extra unit of production. It can be calculated by taking the derivative of either the total cost or the variable cost with respect to quantity, as both approaches yield the same result. This is because the total cost includes fixed costs (which do not change with the level of output) and variable costs (which do change with the level of output), and the derivative of a constant (fixed cost) is zero.

Marginal Cost Can Be Calculated As