| Quantity (Q) | Total Cost (TC) | Actions |
|---|
Tip: Enter Q in ascending order. Marginal cost is computed as ΔTC/ΔQ between successive rows.
Results
| Q | Total Cost (TC) | Marginal Cost (MC) |
|---|
MC curve is derived from your inputs. For discrete data the MC value for a row reflects the change from the previous row.
Formulas Used
- Cost Function Mode: Let total cost be
TC(Q) = FC + v1·Q + v2·Q². Then marginal cost is the derivative with respect to quantity:MC(Q) = dTC/dQ = v1 + 2·v2·Q. - Discrete Data Mode: For successive observations
(Qi-1, TCi-1)and(Qi, TCi)withΔQ = Qi - Qi-1 > 0, computeMCi = (TCi - TCi-1) / ΔQ. - Interpretation: MC approximates the incremental cost of one additional unit at quantity Q. A rising MC suggests capacity constraints or diminishing returns.
Units are arbitrary (e.g., dollars and units). Ensure consistency across inputs.