Marginal cost: Difference between revisions

Revision as of 02:47, 27 June 2007

Revision as of 02:47, 27 June 2007

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{{technical}}

In [[economics]] and [[finance]], '''marginal cost''' is the change in total cost that arises when the quantity produced changes by one unit. Mathematically, the marginal cost (MC) function is expressed as the [[derivative]] of the [[total cost]] (TC) function with respect to quantity (Q). Note that the marginal cost may change with volume, and so at each level of production, the marginal cost is the cost of the next unit produced. [[Image:Marginalcost.gif|thumb|400px|right|A typical Marginal Cost Curve]]