Use this marginal cost calculator to determine the cost of producing one additional unit of a product.
Marginal Cost Calculator
How It Works:
This calculator determines the marginal cost, which is the cost of producing one additional unit of a good. Simply enter the total additional cost that results from producing more goods and the number of units produced, and click “Calculate”.
How to Use It:
Enter the change in total cost in the first input field, then enter the change in quantity in the second input field, and finally click the “Calculate” button to see the result.
How It Calculates Results:
The result is computed by dividing the change in total cost by the change in quantity. The formula for marginal cost (MC) is MC = ΔTC / ΔQ, where ΔTC is the change in total cost and ΔQ is the change in quantity.
Limitations:
Please note that this calculator assumes that the change in quantity is related to the change in cost provided. It cannot account for economies of scale or changes in cost structure not directly tied to the production of additional units. Ensure the inputs are related to the same batch of goods for accurate results.