No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Essential Questions

What are marginal costs?

Posted on April 14, 2014 at 8:30 PM

Marginal costs are the most important costs that a firm faces because these costs help determine profit maximization at the margin. Marginal costs are the change in total costs resulting from a change in output (change in total costs/change in output). It's the additional cost of producing one more unit.

You can also estimate marginal costs by dividing the wage by marginal product (W/MP).

AP Microeconomics Unit 2 Product Markets

Categories: AP Microeconomics, Micro Unit 2 Product Markets

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