What is meant by marginal cost?
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Answer / a.r. kalpana
The marginal cost of an additional unit of output is the
cost of the additional inputs needed to produce that
output. More formally, the marginal cost is the derivative
of total production costs with respect to the level of
output.
The marginal cost of production is the increase in total
cost as a result of producing one extra unit. The concept
of marginal cost in economics is similar to the accounting
concept of variable cost. It is the variable costs
associated with the production of one more unit.
Marginal costs are not constant. For example a factory may
be operating at the highest capacity it can with all
workers working normal full time hours, so increasing
production by one more unit would mean paying overtime, so
the marginal cost would be higher than the current variable
cost per unit.
Conversely, an input may become cheaper as the quantities
purchased rise (e.g. quantity discounts), so marginal costs
may fall as production increases.
| Is This Answer Correct ? | 14 Yes | 5 No |
Answer / fazilhari
The marginal cost of an additional unit of output is the
cost of the additional inputs needed to produce that
output. More formally, the marginal cost is the derivative
of total production costs with respect to the level of
output.
The marginal cost of production is the increase in total
cost as a result of producing one extra unit. The concept
of marginal cost in economics is similar to the accounting
concept of variable cost. It is the variable costs
associated with the production of one more unit.
Marginal costs are not constant. For example a factory may
be operating at the highest capacity it can with all
workers working normal full time hours, so increasing
production by one more unit would mean paying overtime, so
the marginal cost would be higher than the current variable
cost per unit.
Conversely, an input may become cheaper as the quantities
purchased rise (e.g. quantity discounts), so marginal costs
may fall as production increases.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / rajan
In Brief Marginal cost is variable cost of product which
increase / decrese according to production but per unit
remain same.
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / nagaraj goud
The change in total cost that comes from making or
producing one additional item. The purpose of analyzing
marginal cost is to determine at what point an organization
can achieve economies of scale. The calculation is most
often used among manufacturers as a means of isolating an
optimum production level.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / simran
Marginal cost is the additional cost incurred in
producing
an additional unit.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / ramana mfm
marginal cost is nothing but total of variable cost. it
mean marginal cost is a cost it is aadditional cost to
produce the additional unit
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / surendra
marginalcost is the cost which is incurred by the
organization to produce one more unit
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / mash
an additional prduction cost for producing additional unit.
regards,
mahesh
| Is This Answer Correct ? | 1 Yes | 0 No |
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