Question

Why is marginal cost capable of being calculated by looking at

either the change in total variable cost OR the change in total
cost?

Answer 1

Marginal cost can be calculated by looking at either the change in total variable cost or the change in total cost. It represents the additional cost incurred by producing one more unit of output.

Step-by-step explanation:

Marginal cost can be calculated by looking at either the change in total variable cost or the change in total cost. Marginal cost represents the additional cost incurred by producing one more unit of output. It is calculated by dividing the change in total cost (or total variable cost) by the change in output.

For example, if the total cost increases by $100 when output increases by 10 units, then the marginal cost is $10 per unit.