Question

Ive been stuck on this PLEASE help-- how do I find marginal cost?

this is my assignment:

What is the marginal cost of nitrogen in our example when nitrogen is priced at 25 cents a pound vs. if it was 35 cents a pound?

Answer 1

Marginal cost is calculated by dividing the change in total cost by the change in quantity. Let us say that Business A is producing 100 units at a cost of $100. The business then produces at additional 100 units at a cost of $90. So the marginal cost would be the change in total cost, which is $90.