Principles of Microeconomics / Unit 6 MIC 0516 short lesson, about 20 seconds
Marginal Cost
Captions available
The idea
Marginal cost is the change in total cost from one more unit of output; since fixed cost does not change, it equals the change in variable cost per extra unit.
In practice
From fifty to seventy loaves adds sixty dollars: three dollars a loaf.
Where people slip
Marginal cost is what every firm in the next four units compares with the next unit's price.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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