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What is the total cost if the marginal cost of producing the 9th unit is 10?
Wiki User
∙ 13y ago
Total cost would be:
(Average cost)*8 +10.
Wiki User
∙ 13y ago
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What is the marginal cost of the 8th unit of output?
it is the difference between the total cost of producing 8 units and 7 units of output.
What is the Difference between Marginal Costing and Absorption Costing?
In economics, marginal cost is the change in total cost when the quantity produced changes by one unit. Generally speaking, marginal cost at each level of production includes any additional costs required to produce the next unit while absorption cost uses the total direct cost including variable and fixed overhead cost associated in manufacturing a product like the wages of the workers and raw materials in producing a product.
What are benefits of marginal costing?
Marginal cost is the extra cost incurred in producing one unit of a product.If the marginal cost is more than average cost that means that costs are increasing and if it is less it means costs are decreasing.This way we find out how are business is progressing.
What is the Importance of marginal costing in decision making?
Marginal cost is change in total cost due to increase or decrease one unit or output. It is technique to show the effect on net profit if we classified total cost in variable cost and fixed cost.
What is the difference between opportunity cost and marginal cost?
opportunity cost refers to the satisfaction of ones want at the expense of another want while marginal cost is the addition to total cost as a result of increasing output by one unit.
The extra cost of producing one additional unit of output is called?
marginal cost
What is the marginal cost of the 8th unit of output?
it is the difference between the total cost of producing 8 units and 7 units of output.
What is marginal profit?
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
What is a business firm's marginal cost?
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
Why is the equality of marginal revenue to marginal cost essential to profit maximuzation in all of the market structures?
When Marginal Cost is below Marginal Revenue, profit is increasing. When Marginal Cost is above Marginal Revenue, profit is decreasing. Since the goal of firms is to maximise profit, they should produce at a level where the MR of producing another unit is equal to the Marginal Cost of producing another unit. Firms should keep producing until this point because there is a hidden profit in MC. This is because we are not taking into account the Accounting profit.
How does a firm calculate marginal cost?
In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit.
How do cost and production interrelate?
Each product produced is a "unit of production". Each unit has some cost to produce. Therefore, the higher the number of units are produced, the higher the total cost of production.Marginal unit costs are a different issue. As production volumes increase, the marginal cost of producing one more unit may be either higher or lower than the cost of producing the one last made.
What is the Difference between Marginal Costing and Absorption Costing?
In economics, marginal cost is the change in total cost when the quantity produced changes by one unit. Generally speaking, marginal cost at each level of production includes any additional costs required to produce the next unit while absorption cost uses the total direct cost including variable and fixed overhead cost associated in manufacturing a product like the wages of the workers and raw materials in producing a product.
What are benefits of marginal costing?
Marginal cost is the extra cost incurred in producing one unit of a product.If the marginal cost is more than average cost that means that costs are increasing and if it is less it means costs are decreasing.This way we find out how are business is progressing.
What does marginal costs mean?
In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit
How do you figure out the marginal cost of capital?
Depending on the capital: i.e. Let's say the capital is a product of your firm such as hammers. To determine the marginal cost, you have to figure out how much it costs to produce 1 unit (or hammer). To determine this, you divide the Total Cost (which is the sum of Total fixed Costs and Total variable costs) by the quantity of units that you are producing. Therefore, if your total cost equals $1000, and you produce 50 hammers, then your marginal cost is $20 because it costed you $20 per hammer.
What is meant by marginal cost?
Marginal product is the result of an additional output of production. An example is adding an hour to an employeeâ??s work schedule to produce 100 more cookies. Marginal cost is the cost associated with producing an additional output. An example is paying an employee the overtime rate per hour for producing 100 more cookies.
