Answer to Question #125961 in Microeconomics for Fred Kimathi

Question

Marginal cost fornula

Answer 1

Marginal cost represent the incremental cost incurred when producing additional units of goods or services.

Marginal cost(MC)=[change in total cost (∆TC)] / [change in quantity(∆Q)]

Where change in costs is the difference between production costs incurred during the first output run and the production costs in the next batch when output has increased.

And change in quantity the difference between the number of goods made in the first production run and the volume of output made in the following production run.