Answer:
Marginal Cost=Change in Total Cost/Change in Total Quantity
Step-by-step explanation:
Marginal cost is calculated by dividing the change in total cost by the change in quantity. Let us say that Business A is producing 100 units at a cost of £100. The business then produces at additional 100 units at a cost of £90. So the marginal cost would be the change in total cost, which is £90. Divided by the change in quantity, which is the additional 100 units. That gives us: £90/100, which equals £0.90 per unit as the marginal cost.
