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What is marginal cost and
Difference between marginal and veriable cost .?
Asked by Suneha Sharma Last Modified
Answer 
Poulami Mukherjee
Tutor
From mathematical aspect, marginal cost is differentiation of variable cost.
Marginal cost= (Change in total variable cost÷change in quantity)x100
However on economics language, if one unit of commodity is produced how much the cost will rise is the amount equal to marginal cost. It is mentionable that, only variable cost changes with the change in quantity production, not the fixed cost. So if there is marginal cost, then it means that it is told about variable cost. For example, labour cost (as we can hire an extra labour to raise production, so cost will obviously rise) is variable cost. And the example of fixed cost is rent on land (because producer can not raise the portion of land to raise the production, so there is no question of rising cost).
read less Poulami Mukherjee
Tutor
Marginal cost refers to additional cost to produce an additional unit of a commodity
...or
we can say that it’s change in total cost or total variable cost due to the production of one more unit of a commodity...
variable cost refers to cost of variable factors example labour,raw materials etc
read lessView 2 more Answers
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