What is difference between average cost and marginal cost?
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✔There is a difference between average cost and marginal cost. Theaverage cost of a product is the total cost of making a product divided by the total number of products made. Marginal cost is change in total costs which occur when an additional unit of the product is made by the company.
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The average cost is the total cost of production of x units of the product divided by x. Marginal cost refers to the additional amount required to produce the x+1th unit. This does not have to be the average of the cost of x units. ... The total cost is evaluated adding the variable cost to the fixed cost.
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