Marginal Cost Calculator

✖Change in Total Costs refers to difference that comes from producing one additional unit of output during a particular point of time.ⓘ Change in Total Costs [CHTC]			+10% -10%
✖Change in Output of a firm refers to the association of output with using one more additional unit of an input.ⓘ Change in Output [ΔY]			+10% -10%

✖Marginal Cost is the change in total production cost that comes from making one more unit.ⓘ Marginal Cost [MLC]

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Formula

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Marginal Cost

Formula

`"MLC" = "CHTC"/"ΔY"`

Example

`"6.25"="500"/"80"`

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Marginal Cost Solution

STEP 0: Pre-Calculation Summary

Formula Used

Marginal Cost = Change in Total Costs/Change in Output
MLC = CHTC/ΔY
This formula uses 3 Variables

Variables Used

Marginal Cost - Marginal Cost is the change in total production cost that comes from making one more unit.
Change in Total Costs - Change in Total Costs refers to difference that comes from producing one additional unit of output during a particular point of time.
Change in Output - Change in Output of a firm refers to the association of output with using one more additional unit of an input.

STEP 1: Convert Input(s) to Base Unit

Change in Total Costs: 500 --> No Conversion Required
Change in Output: 80 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

MLC = CHTC/ΔY --> 500/80

Evaluating ... ...

MLC = 6.25

STEP 3: Convert Result to Output's Unit

6.25 --> No Conversion Required

FINAL ANSWER

6.25 <-- Marginal Cost

(Calculation completed in 00.004 seconds)

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Created by Aashna

IGNOU (IGNOU), India

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Marginal Cost Formula

Marginal Cost = Change in Total Costs/Change in Output
MLC = CHTC/ΔY

What is Marginal Cost ?

In economics, the Marginal Cost is the change in the total cost that arises when the quantity produced is increased, i.e. the cost of producing additional quantity. In some contexts, it refers to an increment of one unit of output. The marginal cost is measured in dollars per unit, whereas total cost is in dollars, and the marginal cost is the slope of the total cost, the rate at which it increases with output. Marginal cost is different from average cost, which is the total cost divided by the number of units produced.. 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.

How to Calculate Marginal Cost?

Marginal Cost calculator uses Marginal Cost = Change in Total Costs/Change in Output to calculate the Marginal Cost, Marginal Cost is the change in total production cost that comes from producing one additional unit. Marginal Cost is denoted by MLC symbol.

How to calculate Marginal Cost using this online calculator? To use this online calculator for Marginal Cost, enter Change in Total Costs (CHTC) & Change in Output (ΔY) and hit the calculate button. Here is how the Marginal Cost calculation can be explained with given input values -> 6.25 = 500/80.

FAQ

What is Marginal Cost?

Marginal Cost is the change in total production cost that comes from producing one additional unit and is represented as MLC = CHTC/ΔY or Marginal Cost = Change in Total Costs/Change in Output. Change in Total Costs refers to difference that comes from producing one additional unit of output during a particular point of time & Change in Output of a firm refers to the association of output with using one more additional unit of an input.

How to calculate Marginal Cost?

Marginal Cost is the change in total production cost that comes from producing one additional unit is calculated using Marginal Cost = Change in Total Costs/Change in Output. To calculate Marginal Cost, you need Change in Total Costs (CHTC) & Change in Output (ΔY). With our tool, you need to enter the respective value for Change in Total Costs & Change in Output and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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