The cost of producing the next item is called the Marginal Cost (MC) at q items. MC(q) = TC(q 1) – TC(q) is the correct formula. Taking the total cost and dividing by the total number of units ...

A horizontal marginal cost curve indicates stable costs for additional units. Companies aim to maintain this to minimize variability in production costs. Key findings are powered by ChatGPT and ...

The markup of price over marginal cost reveals market power. The distinction between marginal and average cost is key. Average cost is easy to measure, but the price/average cost ratio understates the ...