Marginal cost refers to the change in total cost when the production quantity increases by one unit. It represents the cost of producing one additional unit of a good or service. Marginal cost helps businesses determine the most optimal level of production and pricing for their products. By comparing the marginal cost with the marginal revenue (the revenue generated from selling one additional unit), businesses can determine if it is profitable to produce and sell additional units.
Marginal costs refer to the change in the total cost of producing one additional unit of a product or service. It represents the cost of producing an additional unit beyond the existing level of production. Marginal costs are influenced by factors such as labor, materials, machinery, and other inputs required for production. They are essential for businesses to determine the optimal level of production and pricing strategies.
