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julsineya [31]
4 years ago
16

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of

Social Studies
2 answers:
e-lub [12.9K]4 years ago
8 0
The answer would be : The cost of producing the next unit
Marginal cost is the change of total cost that happen after the production's quantity increased by one unit.The other way to see it is any additional cost required To produce the next unit
Andreyy894 years ago
6 0

Answer: producing the next unit

According to<em> Investopedia,</em> marginal cost is defined as "the change in total cost that comes from making or producing one additional item."  Manufacturers will analyze the cost of producing one item over against producing additional quantities of the same item to determine at what point they achieve a sufficient reduction in the price of production to make production profitable.  So let's say I am able to produce a whatchamajig at a cost of $100, most of which was for setting up my whatchamajig-making machine.  If I make a second whatchamajig, because I've already got the whatchamajig-making machinery in place, the cost drops to $99 for each whatchamajig.  As I continue my analysis, I find that after costs of materials and my labor time, I can make 100 or more whatchamajigs for under $10 each, that becomes a point at which I think I can market my whatchamajigs at a price the market will pay and make my production profitable.

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