ECONOMICS

Detailed explanation-1: -The marginal cost of production measures the change in the total cost of a good that arises from producing one additional unit of that good. The marginal cost (MC) is computed by dividing the change () in the total cost (C) by the change in quantity (Q).

Detailed explanation-2: -The marginal cost of production is used to measure the change in the cost of a product resulting from the production of an extra unit of output. When the company reaches the optimum production level, producing additional units will increase the cost of production per unit.

Detailed explanation-3: -The changing law of marginal cost is similar to the changing law of average cost. They are both decrease at first with the increase of output, then start to increase after reaching a certain scale. While the output when marginal cost reaches its minimum is smaller than the average total cost and average variable cost.

Detailed explanation-4: -Marginal costs are the costs associated with producing an additional unit of output. It is calculated as the change in total production costs divided by the change in the number of units produced. Marginal costs exist when the total cost of production includes variable costs.

Detailed explanation-5: -Marginal cost is calculated by dividing the increase in production costs by the increase in unit output. For example, a company starts by paying $100 to manufacture 100 product units. It then pays an extra $50 to manufacture an extra 100 product units. The initial production cost is $1 per unit.