Marginal Cost Calculator

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Marginal Cost (MC): The additional cost incurred by producing one more unit of output. Formula: MC = ΔTC / ΔQ

Average Cost (AC): Total cost divided by quantity produced. Used to compare efficiency at different production levels.

Economic Significance: When MC < AC, increasing production reduces average cost. When MC > AC, increasing production increases average cost.

Optimization: Profit-maximizing firms produce where marginal cost equals marginal revenue.