How can marginal cost be expressed mathematically Marginal c

How can marginal cost be expressed mathematically? Marginal cost (MC) can be expressed as

A. MC=StartFraction Upper Delta AC Over Upper Delta Upper Q EndFractionACQ, where AC is average cost and Q is output.

B. MC=StartFraction TC Over Upper Q EndFractionTCQ, where TC is total cost and Q is output.

C. MC=StartFraction Upper Delta FC Over Upper Delta Upper Q EndFractionFCQ, where FC is fixed cost and Q is output.

D. MC=TCminusFC, where TC is total cost and FC is fixed cost.

-------> (correct answer)E. MC=StartFraction Upper Delta TC Over Upper Delta Upper Q EndFractionTCQ, where TC is total cost and Q is output.Your answer is correct.

***For example, if the total cost of producing three units of output is $2,381 and the total cost of producing four units of output is $3,078, then the marginal cost of the fourth unit is $____.

(Enter your response as an integer.)

Solution

Marginal cost is the addition total cost when we increase the output by one unit. So mathematically, marginal cost can be expressed as MC=change in total cost/change in quantity produced

if the total cost of producing three units of output is $2,381 and the total cost of producing four units of output is $3,078, then the marginal cost of the fourth unit is the additional cost incurred in producing the fourth unit. It is given as MC=Total cost of producing 4 units-Total cost of producing 3 units=3078-2381=$697