What is a marginal cost? (in detail)

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: How can we predict cost behavior?

A: Cost behaviour shows the relation between the total cost and activities level. We can predict the…

Q: What are Sunk Costs?

A: A sunk cost refers to money that has been spent already and which is unable to recovered. In other…

Q: Loretta spent 6 hours studying for an exam, and she received an A on the exam. Normally, she would…

A: here we can calculate marginal cost as follow

Q: Distinguish implicit and explicit cost of production give an example for each?

A: Explicit costs are out-of-pocket expenses. Implicit cost is the opportunity cost.

Q: At what level of production does the marginal cost have the least value? What is the marginal cost…

A: The marginal cost curve is the U-shaped curve.

Q: An individual is both the owner and the manager of a shop taken on rent. Identify implicit cost and…

A: Explicit cost:- Standard business costs that appear in the accounting records and have a direct…

Q: What effect, if any, does diminishing marginal product have on the shape of the marginal cost curve?

A: According to the law of diminishing marginal returns, after a certain level adding additional units…

Q: The optimal level of production for any company is the level of production that either maximizes…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: Consider the table below that describes the costs associated with producing a good (Q). Total…

A: Marginal cost refers to the additional cost of producing one more unit of output.

Q: Based on the graph provided  i. What is Freda’s marginal cost for each cookie? ii. What is Freda’s…

A: Marginal Opportunity Cost :  Marginal Opportunity Cost may be defined as that amount of a good…

Q: What is meant by Explicit and Implicit costs?

A: Cost is characterized as the monetary value of both producers and customers' purchased goods and…

Q: how can i calculate net cost if i have an equation for marginal cost and marginal benefit?

A: Net Cost (NC) is generally used to do cost-benefit analysis. Hence, it is a measure to determine the…

Q: Explain why using opportunity cost as a measure of the “cost” of something is better than using a…

A: Trade-off:The term trade-off refers to sacrificing one commodity in order to buy the other…

Q: What is marginal cost? Fixed cost?

A: Costs refer to the expenditures which are incurred by the firms in order to purchase various factors…

Q: Describe marginal cost in your own words.

A: Cost accounting is a method of financial management that examines a business's variable and fixed…

Q: What explains the shape of the average and marginal cost curves?  Is it linked to any production…

A: Marginal cost is the measurement of change in total cost with the increment of quantity produced by…

Q: Diminishing Marginal Returns” is achieved when?

A: The law of diminishing marginal returns states that adding an extra factor of production ends up in…

Q: Why Marginal cost curve is U-shaped?

A: The marginal cost curve illustrates the relationship between the marginal cost and the number of…

Q: B) Is the following statements correct or incorrect? Briefly explain: i) A rational producer will…

A: A rational producer is one who wanted to maximize their profit from the business transactions.…

Q: Cassian is attending a football game at the University of Georgia. It's a hot and sunny day and he…

A: Marginal cost is the additional cost that is required in order to produce an additional unit.

Q: Mauricio has a circus act, and he has a budget of $720 to spend on monkeys and unicycles. The cost…

A: The budget of the person is given as $720. The cost of unicycle (U) is $120 and that of monkey (M)…

Q: Is it possible to avoid Diminishing Marginal Return? Why? Explain

A: Law of diminishing returns postulates that as more units of a variable input are used with a fixed…

Q: The optimal level of production for any company is the level of production that either maximizes…

A: All firms will make the production where its marginal revenue (MR) equals to marginal cost (MC), to…

Q: Using an example , explain the production proces

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Marginal cost is ?

A: Microeconomics deals with the several components of a single firm or an individual. The subject’s…

Q: How is the optimum point of production for a firm determined?

A: Point of optimum production is that in which the plant is operated at its full capacity. When the…

Q: Larry is a hard-working college senior. One Tuesday, he decides to work nonstop until he has…

A: Marginal gain refers to the additional gain or a condition where profit is earned by a firm by…

Q: If the marginal cost equals average cost, we are at the _____ point of the ____ curve.

A: Marginal cost is that cost which is incurred because of producing one additional unit of the output,…

Q: Business Week, in an article dealing with management, wrote, "When he took over the furniture…

A: When all items and means of production in an economy are dispersed or assigned to their most useful…

Q: What is Cost Competitive Advantage?

A: Competitive advantage is a set of different features of a company and the products that it produces…

Q: Explain how firms can maximize profits using marginal analysis.

A: Profit increase could be a method that companies bear to ensure that they need the most effective…

Q: input prices or an increase in efficiency would affect costs.

A: The cost of production is the expenditures incurred by the firm to produce the required output.…

Q: Sean is a hard-working college freshman. One Thursday, he decides to work nonstop until he has…

A: Suppose, Sean gets 1 unit of benefit by solving 1 practice problem. The table is showing the total…

Q: Discuss about the concept of marginal cost using your own example?

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Explain why marginal costs increase above some level of production in the short run.

A: The marginal cost is the additional cost incurred from producing one additional unit of goods and…

Q: what is the different between average production and marginal production?

A: The average production is the total production divided by the variable input and it is production…

Q: What are the advantages and disadvantages of Cost benefits?

A: Cost-benefit analysis refers to the system under which the business can try to estimate the profits…

Q: total cost of producing T-shirts can be represented as TC = 50 + 2Q. a) What is the marginal cost of…

A: Total cost represents the entire expenditure that a firm incurs in its daily production and…

Q: You own a coffee shop and use both labor and capital to make lattes. Currently, the marginal product…

A: Input combination is efficient when Marginal product of labor / Price of labor = Marginal product of…

Q: You have decided that you want to attend a costume party as Black Panther. You estimate that it will…

A: The marginal cost is the additional cost of production when one more unit of quantity is produced.