Asked by: Milene Tugasasked in category: General Last Updated: 26th January, 2020
What is MC in microeconomics?
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Also question is, what is MC in economics?
Marginal cost is significant in economic theory because a profit maximising firm will produce up to the point where marginal cost (MC) equals marginal revenue (MR). Also, a firm's supply curve is effectively the part of the MC curve above average variable costs (from point B upwards, on the diagram below).
One may also ask, what is the marginal cost of production? In economics, the marginal cost of production is the change in total production cost that comes from making or producing one additional unit. The purpose of analyzing marginal cost is to determine at what point an organization can achieve economies of scale to optimize production and overall operations.
In this regard, what is marginal cost example?
In economics, marginal cost is the change in the total cost when the quantity produced changes by one unit. It is the cost of producing one more unit of a good. Marginal cost is not related to fixed costs. An example of calculating marginal cost is: the production of one pair of shoes is $30.
What is the best definition of marginal cost?
ANSWER: B) The price of producing one additional unit of a good. EXPLANATION: Marginal Cost is the cost of producing one additional unit of goods or service. It is the change in the opportunity cost when one additional unit is added for production.