ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Marginal cost is the cost to produce one additional unit of production. It is an important concept in cost accounting as marginal cost helps determine the most efficient level of production for a manufacturing process.

Detailed explanation-2: -Incremental cost is the total cost incurred due to an additional unit of product being produced. Incremental cost is calculated by analyzing the additional expenses involved in the production process, such as raw materials, for one additional unit of production.

Detailed explanation-3: -The marginal cost refers to the increase in production costs generated by the production of additional product units. It is also known as the marginal cost of production. Calculating the marginal cost allows companies to see how volume output influences cost and hence, ultimately, profits.

Detailed explanation-4: -Marginal benefit is the maximum amount of money a consumer is willing to pay for an additional good or service. The consumer’s satisfaction tends to decrease as consumption increases. Marginal cost is the change in cost when an additional unit of a good or service is produced.

Detailed explanation-5: -Marginal benefit is the benefit that a person receives from consuming one more unit of a good or service. Marginal benefit is measured as the maximum amount that a person is willing to pay for one more unit of the good or service.