Question

Write down the definition of marginal cost given by ""Ferguson""?

Answer 1

Answer:

According to Mc Conell, “marginal cost may be defined as the additional cost of producing one more unit of output.” In the words of Ferguson, “marginal cost is the addition to total cost due to the addition of one unit of output.” Marginal cost can be calculated as follows: MC = TCn-TCn-1. n= Number of units produced.

Answer 2

Ferguson defined marginal cost as: "Marginal Cost is the addition to total cost due to the addition of one unit of output."

What is the importance of marginal cost?

• The marginal cost helps to make decisions to increase the production in the market
• It also helps to identify the shapes and designs of the new products
• Marginal cost-helpful in determining the price of goods only in the short term
• Marginal price also accept some special offers which are below the existing cost and explore in the market