**Marginal cost (MC)**

Marginal cost is defined as the change in the total cost due to one additional unit of change in the output. In other words, it is the ratio of change in the total cost and change in the total output. Symbolically;

**MC=∆TC / ∆Q**

OR

**MC=TC n - TC n-1**

**Where;**

MC = Marginal Cost

∆TC = Change in Total Cost

∆Q = Change in quantity sold

TC n = Current Total Cost

TC n-1 = Initial Total Cost

The concept of Marginal cost can be explained by the help of following schedule and diagram:

Output (Q) | TC | MC |

0 | 30 | 30 |

1 | 50 | 20 |

2 | 60 | 10 |

3 | 75 | 15 |

4 | 110 | 35 |

5 | 175 | 65 |

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