Marginal Cost

Introduction to Marginal Cost Calculator

The marginal cost (MC) is the change in the total cost (ΔTC) resulting from a one-unit change in quantity (ΔQ). The formula MC = ΔTC / ΔQ calculates the per-unit cost of producing additional units. It is an essential concept in economics and business decision-making, providing insights into the cost of producing more or fewer goods.

Parameter usage:

• ΔTC = change in total cost
• ΔQ = change in quantity

Example valid values:

• ΔTC = 100
• ΔQ = 20

Output:

• MC = marginal cost

Data validation

The change in quantity should be greater than zero. The change in total cost should be zero or greater. If these conditions are not met, an error will be returned explaining the issue.

Summary

This calculator computes the marginal cost based on changes in total cost and quantity, helping in decision-making related to production and pricing.