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Answer Posted / tapas paul
MARGINAL COST MAY BE DEFINED FROM THE TWO ASPECTS:
1.ACCOUNTANT ASPECT- UNDER THIS ASPECT MARGINAL COST MEANS
VARIABLE COST ONLY.VARIABLE COST IS CONSISTENT WITH THE
ELEMENTS OF MATERIAL,LABOUR AND OVERHEAD.
2.ECONOMIC ASPECTS- ANY AMMOUNT BY WHICH AGGREGATE COST ARE
CHANGED IF THE VOLUME OF OUTPUT IS INCREASED OR DECREASED
BY ONE UNIT.
SYMBOLICALLY,
M.C=dC/dQ where dC=>change in cost,dQ=>change in quantity.
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