What is the marginal cost, Cost Accounting

Assignment Help:

Marginal Cost (MC):

The marginal cost of an additional unit of output is the cost of the additional inputs required to make that output. More formally, the marginal cost is the derivative of total production costs with respect to the level of output.

Marginal cost and average cost can vary greatly. For example, assume it costs $1000 to produce 100 units and $1020 to produce 101 units. The average cost per unit is $10, but the marginal cost of the 101st unit is $20

The EconModel applications Perfect Competition and Monopoly emphasize the roles of average cost and marginal cost curves. The short movie Derive a Supply Curve (40 seconds) shows an excerpt from the Perfect Competition presentation that derives a supply curve from profit maximizing behavior and a marginal cost curve.

 


Related Discussions:- What is the marginal cost

Assignment, what are the three of product costs in manufacturing company,di...

what are the three of product costs in manufacturing company,discuss in detail each and supporting with examples.

Job order costing, XYZ Company is a family-owned bicycle manufacturing comp...

XYZ Company is a family-owned bicycle manufacturing company located in Stow, Ohio.  Until recently,it had maintained slow but steady growth in producing and marketing its only pr

Net cash inflow, Holmes Electronics' Canadian Branch will help introduce in...

Holmes Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many mil

Compute the irr, Matheson Electronics' Canadian Branch will help introduce ...

Matheson Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many m

Business management, Business Management Business Management includes ...

Business Management Business Management includes planning and staffing, organizing, directing and controlling an organization's activities so like to meet a specified objectiv

What is the amount of compensation expense, Q. What is the amount of compen...

Q. What is the amount of compensation expense recognized for stock options for each year of the vesting period, given the following information?  A firm awards stock options at-

Throughput Accounting, Image Is Everything, Inc. (IIE) is located in an eme...

Image Is Everything, Inc. (IIE) is located in an emerging market. It specializes in lithographic duplication, catering to demands from the nouveau riche for reproductions of paint

Find the breakeven discount rate, The government of a small South Pacific i...

The government of a small South Pacific island is considering whether to allow development of a small but valuable deposit of phosphate rock. Not having the resources to develop an

What is the margin of safety, Apollo Company manufactures a single product ...

Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $630,000. (1) Use t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd