Marginal Cost Calculator

An online marginal cost calculator helps you to estimate the cost of manufacturing the additional items. If you feel difficulty in estimating incremental changes in the cost of production, this calculator can be of great assistance.

If you know current and future cost and quantity, then substitute these values in this calculator and it will provide you with the marginal cost quickly.

What Is Marginal Cost?

“Marginal cost defines the additional cost of producing each additional unit”

Marginal Cost Formula:

The formula which is used by the marginal cost calculator is:

Marginal Cost = Change In Total Costs ($) / Change In Quantity

How To Calculate Marginal Cost?

Asad owns a bakery in which the staff s manufactures 1000 units of bakery items on a daily basis. He has to pay $2000 for this production quantity. Due to the increasing demand for bakery items, Asad has to increase production items from 1000 to 1500.

Now if he has to pay $2540 from the increased manufacturing, how to find marginal cost?

Solution:

Calculating marginal cost by using the formula as under:

Marginal Cost = Change In Total Costs ($) / Change In Quantity

Marginal Cost = $2540 – $2000 / 1500 – 1000

Marginal Cost = $500 / 500

Marginal Cost = $1.08

This is the required answer that can instantly be calculated by using the marginal cost calculator.

However, the Price Elasticity of Demand Calculator used the simple price elasticity of demand formula to measure the PED within a couple of seconds.

Working of Marginal Cost Calculator:

An online marginal cost function calculator is loaded with a simple UI and lets you calculate the marginal cost in a couple of ways:

Input:

• If Change Value Known:
• Enter the change in total cost and change in quantity
• Hit the calculate button to find the marginal cost
• If Change Value Unknown:
• Enter Current and future cost and quantity.
• Click on the calculate button

Output:

The marginal cost calculator finds the following results using marginal cost formula:

• Marginal cost
• The total change in cost and quantity
• Steps involved in marginal cost calculations and corresponding chart

FAQs:

What Is The Difference Between Marginal Cost And Marginal Revenue?

Marginal cost (MC) is the amount paid for generating one more unit of a particular item.

The marginal revenue (MR) refers to the money earned from the sale of one more unit of an item.

What Is Marginal Factor Cost & Resource Cost?

Marginal factor cost (MFC) is the increase in the total cost paid by the factors of production, which is due to the increase in the number of factors used by a unit.

The marginal resource cost is the additional cost of using another unit of the input.

However, An Online Income Tax Calculator helps to estimate the refund or potential owed amount.

How To Get a Marginal Cost of 0 (Zero Marginal Cost)?

The marginal cost can be reduced by following these steps:

• Minimizing the total cost of the production
• Increasing the graph of the production

Reference: 

From the source of Wikipedia: Short-run marginal cost, Long-run marginal cost, Cost functions and relationship to average cost, Empirical data on marginal cost.

From the source of Investopedia: What Is the Marginal Cost of Production, Example of Marginal Cost, Economies of scale, Perfectly competitive supply curve.

From the source of Lumen Learning: Types of Costs, Total Cost, Variable Costs, Fixed Costs, Economic Cost, Average and Marginal Cost, Relationship Between Average and Marginal Cost.