What is Marginal Cost

Marginal cost is change in total cost when we produce one more unit. If you will produce one more unit, you will see change in the total cost. It may be decrease or increase and this change will be marginal cost. In short form, we say it as MC.

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Relationship between Average Cost Marginal Cost and Total Cost

Following observations with regards to the relation between average cost and marginal cost. We divide this relationship into two parts. a) Relationship of average cost and marginal cost and b) relationship of total cost and marginal cost.

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