ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Marginal cost represents the incremental costs incurred when producing additional units of a good or service. It is calculated by taking the total change in the cost of producing more goods and dividing that by the change in the number of goods produced.

Detailed explanation-2: -Marginal cost is the marginal change in total cost caused by producing one more unit of product. We can calculate the marginal cost by dividing the change in total cost by the change in the quantity of output. Marginal cost (MC) is the additional cost of producing one more unit of a good or service.

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: -Average total cost (ATC) is calculated by dividing total cost by the total quantity produced. The average total cost curve is typically U-shaped. Average variable cost (AVC) is calculated by dividing variable cost by the quantity produced.

Detailed explanation-5: -As always, marginal cost is calculated by dividing the change in total cost by the change in quantity, while average cost is calculated by dividing total cost by quantity.