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Question
Define marginal cost.
Solution
Marginal cost is an additional cost to the total cost incurred when one more unit of good is produced.
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RELATED QUESTIONS
From the following information about a firm, find the firm's equilibrium output in terms of marginal cost and marginal revenue. Give reasons. Also, find profit at this output.
| Output (units) | Total Revenue (Rs) |
Total Cost (Rs) |
| 1 | 8 | 10 |
| 2 | 16 | 18 |
| 3 | 24 | 23 |
| 4 | 32 | 31 |
| 5 | 40 | 41 |
Why is the short run marginal cost curve ‘U’-shaped?
What do the long run marginal cost and the average cost curves look like?
The following table shows the total cost schedule of a firm. What is the total fixed cost schedule of this firm?
Calculate the TVC, AFC, AVC, SAC and SMC schedules of the firm.
|
L |
TPL |
|
0 |
10 |
|
1 |
30 |
|
2 |
45 |
|
3 |
55 |
|
4 |
70 |
|
5 |
90 |
|
6 |
120 |
The following table gives the total cost schedule of a firm. It is also given that the average fixed cost at four units of output is Rs 5/-. Find the TVC, TFC, AVC, AFC, SAC and SMC schedules of the firm for the corresponding values of output.
|
L |
TPL |
|
1 |
50 |
|
2 |
65 |
|
3 |
75 |
|
4 |
95 |
|
5 |
130 |
|
6 |
185 |
Calculate Total variable cost and Marginal cost from the data given below.
| Output (units) | 0 | 1 | 2 | 3 |
| Total cost | 40 | 60 | 78 | 97 |
Given that the fixed cost is Rs. 30. Calculate TVC and TC from the following data:
| Output (units) | 0 | 1 | 2 | 3 |
| Marginal Cost | 0 | 10 | 15 | 25 |
