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Sagot :
To compute marginal cost, divide the change in production costs by the change in quantity. The objective of analyzing marginal cost is to specify at what point an organization can gain economies of scale to optimize production and general operations.
What is marginal cost?
The marginal cost exists as the change in the total cost that occurs when the quantity produced stands incremented, the cost of producing an additional quantity. Marginal cost exists as the added cost to produce an additional well. This exists then the marginal cost: how much it costs to produce one additional unit of a good or service. The costs of production define the marginal cost.
To compute marginal cost, divide the change in production costs by the change in quantity. The objective of analyzing marginal cost is to specify at what point an organization can gain economies of scale to optimize production and general operations. Companies utilize marginal analysis as a decision-making instrument to assist them to maximize their potential profits. Marginal guides focus on the cost or use of the next unit or individual, for example, the cost to produce one more additional widget or the profit gained by adding one more worker.
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