Marginal Cost in Economics

The change in the total cost that arises when the quantity produced is increased, i.e. the cost of producing additional quantity.

In dollars per unit.

The slope of the total cost, the rate at which it increases with output.

<p>Marginal cost includes all costs that vary with the level of production, whereas average cost is the total cost divided by the number of units produced.</p> Signup and view all the answers

<p>All costs that vary with the level of production.</p> Signup and view all the answers