Marginal Cost

Marginal Cost. Marginal cost is the cost of producing an extra unit of output. The marginal cost MC is computed by dividing the.

It is also the amount by which total cost decreases by not producing one extra unit. Under this technique all costs are classified into fixed costs and variable costs. It can be calculated as.

Calculating marginal costs is a vital aspect to doing business.

It is a cost incurred due to the change in total cost due to an increase in the unit of product. Uday Kotak 04 Sep 2020 0420 PM IST. It is a cost incurred due to the change in total cost due to an increase in the unit of product. It is also the amount by which total cost decreases by not producing one extra unit.