How can marginal cost be expressed mathematically? Marginal cost (MC) can be expressed as A. MCequals=StartFraction Upper Delta TC Over Upper Delta Upper Q EndFraction ΔTC ΔQ , where TC is total cost and Q is output. B. MCequals=StartFraction Upper Delta FC Over Upper Delta Upper Q EndFraction ΔFC ΔQ , where FC is fixed cost and Q is output. C. MCequals=StartFraction Upper Delta AC Over Upper Delta Upper Q EndFraction ΔAC ΔQ , where AC is average cost and Q is output. D. MCequals=TCminus- FC, where TC is total cost and FC is fixed cost. E. MCequals=StartFraction TC Over Upper Q EndFraction TC Q , where TC is total cost and Q is output.

Question

Isabella Callahan

Business

8 February, 12:39

How can marginal cost be expressed mathematically? Marginal cost (MC) can be expressed as A. MCequals=StartFraction Upper Delta TC Over Upper Delta Upper Q EndFraction ΔTC ΔQ , where TC is total cost and Q is output. B. MCequals=StartFraction Upper Delta FC Over Upper Delta Upper Q EndFraction ΔFC ΔQ , where FC is fixed cost and Q is output. C. MCequals=StartFraction Upper Delta AC Over Upper Delta Upper Q EndFraction ΔAC ΔQ , where AC is average cost and Q is output. D. MCequals=TCminus- FC, where TC is total cost and FC is fixed cost. E. MCequals=StartFraction TC Over Upper Q EndFraction TC Q , where TC is total cost and Q is output.

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Answers (1)

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Jasmine Mooney · Answer 1

A. MCequals=StartFraction Upper Delta TC Over Upper Delta Upper Q EndFraction ΔTC ΔQ , where TC is total cost and Q is output.

ΔTC/ΔQ

Explanation:

ΔTC/ΔQ

Marginal cost is the change in cost related and occurred due to change in units of production, that means the change in total cost, due to change in number of units produced.

Generally this decreases as an effect of economies of scale because of increase in output, as there are discounts on bulk orders and bulk manufacturing.

This clearly explains the relation of cost with number of units.