How To Calculate Marginal Cost?

Identify the change in total cost

Identify the change in quantity produced

Divide the change in total cost by the change in quantity

Use the formula: Marginal Cost = Change in Total Cost / Change in Quantity

Example: if total cost rises from 100 to 130 when output rises from 10 to 15 units, marginal cost = 30 / 5 = 6

If using calculus, take the derivative of total cost with respect to quantity: MC = dTC/dQ

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