Economics 101: Marginal Cost | SterlingTerrell.net

Economics 101: Marginal Cost

What is marginal cost?

Marginal Cost is the change in Total Cost from producing one more unit of output.


Marginal Cost = The Change in Total Cost / The Change in Quantity Produced

Marginal cost is important in business because one would never want to produce a good or service where marginal cost was greater than marginal revenue.