ENTREPRENEURSHIP

Detailed explanation-1: -Simply put, marginal cost is the change in the cost for production when you decide to produce one more unit of a good. Marginal cost (MC) is the additional cost of producing one more unit of a good or service. It is calculated by dividing the change in total cost by the change in the quantity of output.

Detailed explanation-2: -Marginal cost is the change in the total cost of production upon a change in output that is the change in the quantity of production. In short, the change in total cost arises when the quantity produced changes by one unit. Mathematically, it is expressed as a derivative of the total cost concerning quantity.

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: -Generally, the marginal cost of production tends to rise as the quantity being produced goes up. Through marginal cost, the manufacturer can determine how to allocate resources among the production units and maximize output.