Marginal cost can be derived from the

Assessment: WAEC SSCE - Economics - 2003 (Objective) Subject: Economics

Question 1 Report

Marginal cost can be derived from the
Answer Details
Marginal cost can be derived from the "total cost". Marginal cost refers to the additional cost incurred when one extra unit of a product is produced or sold. The total cost is the sum of all the costs incurred in producing a certain number of units. Therefore, if we calculate the total cost for producing n units of a product and then calculate the total cost for producing n+1 units, the difference between the two total costs will give us the marginal cost of producing the extra unit. This is because the additional cost incurred in producing the extra unit is the difference between the total cost of producing n+1 units and the total cost of producing n units. Therefore, the correct option is "total cost".

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