Marginal Cost Formula





Formula:

Marginal Cost = Change in Total Cost = ΔTC
                                                                          Change in Output    Δq

The readers can easily understand from the table given below as to how the marginal cost is computed:

Schedule:


Units of Output
Total Cost (Dollars)
Marginal Cost (Dollars)
1
5
5
2
9
4
3
12
3
4
16
4
5
21
5
6
29
8

Graph/Diagram:


MC curve can also be plotted graphically. The marginal cost curve in fig. (13.8) decreases sharply with smaller Q output and reaches a minimum. As production is expanded to a higher level, it begins to rise at a rapid rate.



Posted in . Bookmark the permalink. RSS feed for this post.

Leave a Reply

Related Books

Popular Posts

Search Examples and Formula's

Advertisement

Join Us on Facebook

Accounting for Management - Accounting theme from Business Law.