Marginal and Average costs

Question 1

Marginal Cost equation

Answer 1

MC = change in total cost/ change in average cost

Question 2

Average cost equation

Answer 2

AC = total cost / Quantity

average fixed cost + average variable cost

Question 3

what is marginal cost

Answer 3

marginal cost is the extra cost when producing one more unit of output

Question 4

MC curve looks like

Answer 4

Looks like a nike tick because of the law of diminishing returns

firstly there is increasing labour productivity and increasing marginal product because of specialisation between workers.