Marginal cost is the additional cost incurred by a company for producing one additional unit of a good or service. It is calculated by dividing the change in total cost by the change in the quantity of goods or services produced.Marginal cost is an important concept in economics because it helps a company determine the most cost-effective level of production. By comparing the marginal cost of production to the selling price of a good or service, a company can determine whether it is profitable to produce additional units.
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