Question

Marginal cost is defined as the change in ________ cost when output changes by one unit. In the short run

Answer 1

Marginal cost is defined as the percentage change in total when output changes by one unit

Step-by-step explanation:

Marginal cost is the cost of producing one extra unit of output.In order to marginal cost, the below formula is helpful:

marginal=total cost at succeeding output level-total cost at preceding output level/(volume at succeeding output level-volume at preceding output level)

Assuming the total cost and volume at succeeding levels are $4000 and 4000 units

Then total cost and volume at preceding ones are $3000 and 3000

Marginal cost=$4000-$3000/4000-3000

=$1

Answer 2

Marginal cost is defined as the change in total cost when output changes by one unit in the short run.

Step-by-step explanation:

Marginal cost is defined as the change in total cost when output changes by one unit. In the short run.

It is the amount by total cost will increase as a result of producing additional one more unit of a product.