Marginal Cost Calculator Online

Marginal Cost Calculator

Marginal Cost Calculator

Marginal Cost Calculator is Change in the total cost divided to change in total quantity.The second step is to consider marginal revenue. This value is calculated similarly to marginal cost, but, instead of additional cost, it uses the additional revenue the extra unit (ΔTR).

Formula us,

MC = ΔTC/ΔQ

let us consider,

MC – marginal cost;

ΔTC – change in the total cost; and

ΔQ – change in the total quantity.

Example For Marginal cost

For example, imagine that your company produces chairs. Every month there are new 20,000 chairs created, which costs the company a total of $6,000. You may wonder how much it would cost to produce an additional 3,000 chairs, and, if so, you should use the marginal cost calculator. If 13,000 chairs costs $7,500, input this data into the marginal cost formula from above:

MC = ΔTC/ΔQ

MC= (7,500 – 6,000) / (13,000 – 20,000) = 5,500 / 3,000 = $1.833

It costs your company $0.25 to produced unit.

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