Marginal Cost Calculator
If you want to find the marginal cost, then you can use our marginal cost calculator.
What is marginal cost?
Marginal cost is the variation that occurred in the price per the additional unit of production.
To have a clear concept, it is the incremental cost if you increase the quantity of your product by a single unit. You can use it to estimate the amount needed for the total production in the market.
You can also use it to grow your small-scale business to a large-scale business.
It is the best source to get an idea about the increase in the cost per unit, helping you to enhance the business level.
Formula Of A Marginal Cost Calculator
The formula to calculate the marginal cost is:
MC = ΔTC/ ΔQ
MC represents the marginal cost
ΔTC represents the change in the total cost
ΔQ is representing the change in the production quantity
To explain the concept thoroughly, we have an example so that marginal cost is more clear and obvious.
We have an industry that is producing five solar panels for $1500 per day. Now they intend to grow their business to a single unit. They started producing six solar panels, and now the total cost is $1700 per day. What will be the marginal cost?
Putting the values,
MC = ΔTC/ ΔQ
MC = (1600-1500) / (6-5)
MC = 1000/1
MC = 1000
So the marginal cost will be
By the use of the calculator, you can get an idea about the cost you need to grow your business plan. Forget the hard calculations and use the marginal cost calculator so that you can get your answer in a few seconds.