Marginal Cost Calculator

How to Use the Calculator

1. Enter the Total Cost (TC) for producing a certain quantity of goods.
2. Enter the Current Quantity (Q) of goods produced.
3. Enter the Previous Quantity (Q₁) of goods produced before the current quantity.
4. Click the Calculate button to compute the marginal cost.
5. The result will be displayed in the Marginal Cost (MC) field.

Understanding Marginal Cost

Marginal cost is the additional cost incurred to produce one more unit of a good or service. It is calculated as the change in total cost divided by the change in quantity.

Formula

Marginal Cost (MC) = ΔTC / ΔQ

Where:

• ΔTC = Change in Total Cost (Current Total Cost - Previous Total Cost)
• ΔQ = Change in Quantity (Current Quantity - Previous Quantity)

Example

Suppose the total cost of producing 10 units is $100, and the total cost of producing 11 units is $105.

Here, the change in total cost (ΔTC) is $105 - $100 = $5, and the change in quantity (ΔQ) is 11 - 10 = 1.

The marginal cost (MC) would be $5 / 1 = $5 per unit.