Q&A for How to Find Marginal Cost

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Can marginal cost go up?

Community Answer

Yes, marginal cost can increase as it exhibits economies of scale.

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Question

Why does the fixed cost increase and the variable cost remains the same? It should be the opposite.

Community Answer

Total fixed costs should remain the same. The fixed cost per unit will vary according to how many units are produced. For example, if fixed costs were $4000, and 400 units were produced, fixed cost per unit is $10. If 100 units were produced, then fixed cost per unit is $40.

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Question

How do I find marginal total cost?

Community Answer

Total cost B - Total cost A / the difference in output produced. This is used to determine the increase in total cost contributed by an increase in total output produced.

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Question

How can I calculate marginal revenue?

Community Answer

Change in total cost (new-old)÷ change in output produced (new-old output). marginal cost is the addition to total cost resulting from increasing output by one unit.

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