Question

How can marginal cost be expressed​ mathematically? Marginal cost​ (MC) can be expressed as

A. MC=StartFraction Upper Delta AC Over Upper Delta Upper Q EndFractionΔACΔQ​, where AC is average cost and Q is output.

B. MC=StartFraction TC Over Upper Q EndFractionTCQ​, where TC is total cost and Q is output.

C. MC=StartFraction Upper Delta FC Over Upper Delta Upper Q EndFractionΔFCΔQ​, where FC is fixed cost and Q is output.

D. MC=TCminus−​FC, where TC is total cost and FC is fixed cost.

-------> (correct answer)E. MC=StartFraction Upper Delta TC Over Upper Delta Upper Q EndFractionΔTCΔQ​, where TC is total cost and Q is output.Your answer is correct.

***For​ example, if the total cost of producing three units of output is ​$2,381 and the total cost of producing four units of output is ​$3,078​, then the marginal cost of the fourth unit is ​$____.

​(Enter your response as an​ integer.)

Answer 1

Marginal cost is the addition total cost when we increase the output by one unit. So mathematically, marginal cost can be expressed as MC=change in total cost/change in quantity produced

if the total cost of producing three units of output is ​$2,381 and the total cost of producing four units of output is ​$3,078​, then the marginal cost of the fourth unit is the additional cost incurred in producing the fourth unit. It is given as MC=Total cost of producing 4 units-Total cost of producing 3 units=3078-2381=$697