What is marginal cost?

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Answered by: T.Prasad

  • Aug 10th, 2006


Marginal Cost is the cost with is incurred to produce one more extra unit.

Example to produce 100 units cost is Rs. 500/-

to produce the 101th unit the cost became Rs. 520/- (The cost to produce one more unit i.e, unit is Rs. 20/-)  The Rs. 20/- is called Marginal Cost.

Showing Answers 1 - 12 of 12 Answers

Bhaskar

  • Oct 24th, 2005
 

Marginal cost is nothing but Variable cost.

T.Prasad

  • Aug 10th, 2006
 

Marginal Cost is the cost with is incurred to produce one more extra unit.

Example to produce 100 units cost is Rs. 500/-

to produce the 101th unit the cost became Rs. 520/- (The cost to produce one more unit i.e, unit is Rs. 20/-)  The Rs. 20/- is called Marginal Cost.

dandasrikanth

  • Nov 27th, 2006
 

marinal cost is nothing but u produce additional unit in production. that additional unit cost is called marginalcost

andy

  • Dec 26th, 2006
 

Marginal Cost is variable cost AS LONG AS your fixed assets can handle the output. If that additional unit forces you to acquire more assets to handle it, your marginal cost can be way out of line with your average variable cost.

ngodza22

  • Jun 28th, 2008
 

it is a costing rule technique that excludes fixed cost from influencing decisions because they are said to be irrelevent cost.... simply because they are bound to be incurred even if a firm produce or doesn't produce eg rent,

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