Marginal cost: Learn what marginal cost is

Learn what marginal cost is, how to calculate it, and how it affects production decisions. Find out the difference between marginal cost and marginal benefit, and see examples and worksheets on marginal cost . Marginal cost is defined as the change to total cost due to producing one more input . It examines the changes in cost associated with the variable costs of producing additional items, which include items such as raw materials and labour. Learn what marginal cost is, how to calculate it using the marginal cost formula, and see real-world examples. Understand its role in business decisions. Marginal cost is the extra money a business spends to make just one more product. It's a key concept that helps companies figure out how much they should produce and what prices to charge.