Marginal Cost Calculator

LAST UPDATE: September 24th, 2020


Definition – What is Marginal Cost?

Marginal cost is the cost of producing one additional unit. It indicates an incremental cost change.

Formula – How to Calculate Marginal Cost

Marginal Cost = Change in Total Variable Costs ÷ Change in Quantity


Change in total cost is $40 and change in quantity is 1,000.

Marginal Cost = $40 ÷ 1,000 = 0.04

Marginal Cost (MC) is 0.04.

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