How to calculate marginal cost?

[niyati]

I’m trying to calculate the marginal cost for a product in my business. Can someone explain the formula and give a simple example? Also, how is it different from average cost?

 

[maria]

Marginal Cost=Change in Quantity/Change in Total Cost

 

[deepak]

In order to compute marginal cost, we take the change in total cost divided by the change in quantity produced. The formula is:

Marginal Cost (MC) = Change in Total Cost/change in quantity.

It indicates the amount one extra unit of production costs and this assists businesses in the pricing and production decisions.

 

[BlissCore]

Marginal cost is the extra cost of producing one more unit of a product. The formula is: Marginal Cost = Change in Total Cost ÷ Change in Quantity. For example, if producing 100 units costs $1,000 and 101 units cost $1,010, the marginal cost is $10. It differs from average cost, which is the total cost divided by total units produced.

 

[charlie]

We divide the change in total cost by the change in quantity produced to determine marginal cost. The equation is:

Change in Total Cost divided by Change in Quantity is the Marginal Cost (MC).

It represents the amount one more unit of manufacturing costs and this supports firms in the pricing and production decisions.

 

[Samuel]

We divide the change in total cost by the change in quantity produced to get marginal cost. The equation is: Change in Total Cost divided by Change in Quantity equals Marginal Cost (MC). It helps firms make decisions about pricing and production by showing how much an additional unit of manufacturing costs.