Marginal cost - Revision history

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	A '''cost''' is what a firm, an individual or society pays to produce or consume [[goods and services]]. It is the consumption of resources such as labour time, [[capital]], materials, [[fuel]]s, etc. In economics, all resources are valued at their ''opportunity cost'', which is the value of the alternative use of the resources. [[Cost]]s are defined in a variety of ways and under a variety of assumptions that affect their value. The opposite of a cost is a benefit and often both are considered together. For example, ''net cost'' is the difference between gross costs and benefits.<ref>A. Verbruggen, W. Moomaw and J. Nyboer. ''Glossary of terms used in the: Special Report on Renewable Energy Sources and Climate Change Mitigation (SRREN).'' [Onlince], Available: http://www.ipcc.ch/publications_and_data/publications_and_data_glossary.shtml [May.29, 2016]</ref>		In general, a '''[[cost]]''' is what a firm, individual, or society pays in order to produce or consume [[goods and services]]. It is the consumption of resources such as labour time, [[capital]], materials, [[fuel]]s, etc. In economics, all resources are valued at their ''opportunity cost'', which is the value of the alternative use of the resources. [[Cost]]s are defined in a variety of ways and under a variety of assumptions that affect their value. The opposite of a cost is a ''benefit'' and often both are considered together. For example, ''net cost'' is the difference between gross costs and benefits.<ref>A. Verbruggen, W. Moomaw and J. Nyboer. ''Glossary of terms used in the: Special Report on Renewable Energy Sources and Climate Change Mitigation (SRREN).'' [Onlince], Available: http://www.ipcc.ch/publications_and_data/publications_and_data_glossary.shtml [May.29, 2016]</ref>

	~~==Marginal Cost==~~		<onlyinclude>'''<big>Marginal cost</big>''' is the cost of adding '''''one additional unit''''' of output or the cost of increasing an activity.</onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Marginal Cost." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1895?rskey=5wQ9oV&result=1, 2009 [May 29, 2016]</ref> It is the change in the [[total cost]] (<math>\Delta</math>TC) divided by the change in output (<math>\Delta</math>Q). This can also be expressed as the variable cost (<math>\Delta</math>VC) divided by the change in output (<math>\Delta</math>Q). This is because the fixed cost doesn't change, but the total cost (TC) will alter in sync with the variable cost (VC).<ref>A. Goolsbee, S. Levitt and C. Syverson. ‘’Microeconomics’’. New York: Worth Publishers, 2013, pp. 276.</ref>
	<onlyinclude>Marginal cost is the cost of adding one additional unit of output or the cost of increasing an activity.</onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Marginal Cost." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1895?rskey=5wQ9oV&result=1, 2009 [May 29, 2016]</ref> It is the change in the total cost (<math>\Delta</math> TC) divided by the change in output (<math>\Delta</math> Q). This can also be expressed as the variable cost (<math>\Delta</math> VC) divided by the change in output (<math>\Delta</math> Q). This is because the fixed cost doesn't change, but the total cost (TC) will alter in sync with the variable cost (VC).<ref>A. Goolsbee, S. Levitt and C. Syverson. ‘’Microeconomics’’. New York: Worth Publishers, 2013, pp. 276.</ref~~><br /~~>

	~~::::::::::::'''MC'''= <math>\frac{\Delta TC}{\Delta Q}</math><br />~~

	~~Essentially, this is how much it costs to produce or consume one more unit of something. To see what this looks like in the context of a firm, see: [[costs for a firm]].~~

	==~~See Also~~==		<center>
			{\|
			\|<big>'''MC=''' <math>\frac{\Delta TC}{\Delta Q}</math></big>
			\|‎ ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎
			\| <big>'''MC=''' <math>\frac{\Delta VC}{\Delta Q}</math></big>
			\|}
			</center>


			Essentially, this is how much it costs to produce or consume one more unit of something. To see what this looks like in the context of a firm, see [[costs for a firm]].[[File:Image marginal cost.png\|thumb\|Figure 1. This is a cost curve, it shows how price changes in response to quantity.<ref name=":0">Lumen Learning (2025). (Accessed July 31, 2026). ''Production Cost'' [Online]. Available: https://www.coursesidekick.com/economics/study-guides/boundless-economics/production-cost</ref>]]Figure 1 on the right compares marginal cost (MC) with [[Total cost#Average Total Cost\|average total cost]] (ATC) and marginal revenue (MR).<ref name=":0" /> As the average total cost declines, the cost of one additional unit (marginal cost) is less. As average total cost increases, the marginal cost is more. Average total cost is at a minimum when it is ''equal'' to the marginal cost.
			==For Further Reading==
			*[[Cost]]
	*[[Variable cost]]		*[[Variable cost]]
	*[[Total cost]]		*[[Total cost]]
			*[[Costs for a firm]]
			*Or explore a [[Special:Random\|random page]]

	==References==		==References==
	{{reflist}}		{{reflist}}
	[[Category: Uploaded]]		[[Category: Uploaded]]

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Jmdonev at 22:20, 11 May 2018

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	[[Category:Done ~~2016~~-04-30]]		[[Category:Done 2018-05-18]]
	A '''cost''' is what a firm, an individual or society pays to produce or consume [[goods and services]]~~, it~~ is the consumption of resources such as labour time, [[capital]], materials, [[fuel]]s, etc. In economics, all resources are valued at their opportunity cost, which is the value of the alternative use of the resources. [[Cost]]s are defined in a variety of ways and under a variety of assumptions that affect their value. The opposite of a cost is a benefit and often both are considered together~~, for~~ example, net cost is the difference between gross costs and benefits.<ref>A. Verbruggen, W. Moomaw and J. Nyboer. ''Glossary of terms used in the: Special Report on Renewable Energy Sources and Climate Change Mitigation (SRREN).'' [Onlince], Available: http://www.ipcc.ch/publications_and_data/publications_and_data_glossary.shtml [May.29, 2016]</ref>		A '''cost''' is what a firm, an individual or society pays to produce or consume [[goods and services]]. It is the consumption of resources such as labour time, [[capital]], materials, [[fuel]]s, etc. In economics, all resources are valued at their ''opportunity cost'', which is the value of the alternative use of the resources. [[Cost]]s are defined in a variety of ways and under a variety of assumptions that affect their value. The opposite of a cost is a benefit and often both are considered together. For example, ''net cost'' is the difference between gross costs and benefits.<ref>A. Verbruggen, W. Moomaw and J. Nyboer. ''Glossary of terms used in the: Special Report on Renewable Energy Sources and Climate Change Mitigation (SRREN).'' [Onlince], Available: http://www.ipcc.ch/publications_and_data/publications_and_data_glossary.shtml [May.29, 2016]</ref>

	==Marginal Cost==		==Marginal Cost==
	<onlyinclude>Marginal cost is the cost of adding one additional unit of output or the cost of increasing an activity.</onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Marginal Cost." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1895?rskey=5wQ9oV&result=1, 2009 [May 29, 2016]</ref> It is the change in the total cost (<m>\Delta</m> TC) divided by the change in output (<m>\Delta</m> Q). This can also be expressed as the variable cost (<m>\Delta</m> VC) divided by the change in output (<m>\Delta</m> Q) because the fixed cost doesn't change the total cost (TC) will alter in sync with the variable cost (VC).<ref>A. Goolsbee, S. Levitt and C. Syverson. ‘’Microeconomics’’. New York: Worth Publishers, 2013, pp. 276.</ref><br />		<onlyinclude>Marginal cost is the cost of adding one additional unit of output or the cost of increasing an activity.</onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Marginal Cost." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1895?rskey=5wQ9oV&result=1, 2009 [May 29, 2016]</ref> It is the change in the total cost (<math>\Delta</math> TC) divided by the change in output (<math>\Delta</math> Q). This can also be expressed as the variable cost (<math>\Delta</math> VC) divided by the change in output (<math>\Delta</math> Q). This is because the fixed cost doesn't change, but the total cost (TC) will alter in sync with the variable cost (VC).<ref>A. Goolsbee, S. Levitt and C. Syverson. ‘’Microeconomics’’. New York: Worth Publishers, 2013, pp. 276.</ref><br />

	::::::::::::'''MC'''= <m>\frac{\Delta TC}{\Delta Q}</m><br />		::::::::::::'''MC'''= <math>\frac{\Delta TC}{\Delta Q}</math><br />

	Essentially, this is how much it costs to produce or consume one more unit of something~~, to~~ see what this looks like in the context of a firm, see: [[costs for a firm]].		Essentially, this is how much it costs to produce or consume one more unit of something. To see what this looks like in the context of a firm, see: [[costs for a firm]].

	==See Also==		==See Also==
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	==References==		==References==
	{{reflist}}		{{reflist}}
			[[Category: Uploaded]]

Jmdonev: 1 revision imported: From the summer

2016-09-17T22:29:41Z

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Jmdonev at 19:16, 4 August 2016

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[[Category:Done 2016-04-30]]
A '''cost''' is what a firm, an individual or society pays to produce or consume [[goods and services]], it is the consumption of resources such as labour time, [[capital]], materials, [[fuel]]s, etc. In economics, all resources are valued at their opportunity cost, which is the value of the alternative use of the resources. [[Cost]]s are defined in a variety of ways and under a variety of assumptions that affect their value. The opposite of a cost is a benefit and often both are considered together, for example, net cost is the difference between gross costs and benefits.<ref>A. Verbruggen, W. Moomaw and J. Nyboer. ''Glossary of terms used in the: Special Report on Renewable Energy Sources and Climate Change Mitigation (SRREN).'' [Onlince], Available: http://www.ipcc.ch/publications_and_data/publications_and_data_glossary.shtml [May.29, 2016]</ref>

==Marginal Cost==
<onlyinclude>Marginal cost is the cost of adding one additional unit of output or the cost of increasing an activity.</onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Marginal Cost." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1895?rskey=5wQ9oV&result=1, 2009 [May 29, 2016]</ref> It is the change in the total cost (<m>\Delta</m> TC) divided by the change in output (<m>\Delta</m> Q). This can also be expressed as the variable cost (<m>\Delta</m> VC) divided by the change in output (<m>\Delta</m> Q) because the fixed cost doesn't change the total cost (TC) will alter in sync with the variable cost (VC).<ref>A. Goolsbee, S. Levitt and C. Syverson. ‘’Microeconomics’’. New York: Worth Publishers, 2013, pp. 276.</ref><br />

::::::::::::'''MC'''= <m>\frac{\Delta TC}{\Delta Q}</m><br />

Essentially, this is how much it costs to produce or consume one more unit of something, to see what this looks like in the context of a firm, see: [[costs for a firm]].

==See Also==
*[[Variable cost]]
*[[Total cost]]

==References==
{{reflist}}