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Marginal cost (MC)

Marginal cost (MC) is the cost of producing an extra unit of output. It is calculated by dividing the change in total costs (ΔTC) by the change in the level of output (ΔQ), that is, MC = ΔTC / ΔQ.

Where this appears

The syllabus topics that use this term.

  • 2.2Increasing Marginal Costs
  • 2.3Calculating Surplus (HL Only)
  • 2.4Profit Maximization
  • 2.6Determinants of PES
  • 2.11Monopoly
  • 2.11Producer Behavior and Profit Maximization

Taught in Supply

All 809 terms
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