Question
Asked Jan 2, 2019

What is the marginal cost of producing an additional unit:

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Expert Answer

Step 1

Definition of Marginal cost.

Marginal cost refers to the additional cost incurred by a producer or a firm when there is an additional unit of output production.

Step 2

When a firm goes on producing output in the short run or in the long run, they have to bear the additional costs of production such as input costs in terms of labour, rent, capital and other variables. The cost of this addition to the total cost is called as marginal cost. ...

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