Marginal cost CANNOT be calculated as:A)  TC/  Q,where TC is total cost and Q is output.B)  VC/  Q,where VC is variable cost and Q is output.C) the slope of the total cost curve.D)  ATC *  Q,where ATC is average total cost and Q is output.

Question

Marginal cost CANNOT be calculated as:A)   TC/  Q,where TC is total cost and Q is output.B)   VC/  Q,where VC is variable cost and Q is output.C) the slope of the total cost curve.D)   ATC *   Q,where ATC is average total cost and Q is output.

William Mattox · Accepted Answer

Final Answer : D, Explanation :  Marginal cost is the change in total cost that results from producing one additional unit of output. It is usually calculated as the derivative of the total cost function with respect to quantity. However, in this case, options A and B provide alternative formulas for calculating marginal cost based on total cost and variable cost, respectively. Option C is incorrect because the slope of the total cost curve is actually equal to average variable cost, not marginal cost. Option D is also incorrect because the formula given multiplies average total cost (ATC) by quantity (Q), which is not a valid way to calculate marginal cost. Therefore, the best choice is D.

Marginal cost CANNOT be calculated as:

A) TC/Q,where TC is total cost and Q is output.
B) VC/Q,where VC is variable cost and Q is output.
C) the slope of the total cost curve.
D) ATC * Q,where ATC is average total cost and Q is output.

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Learning Objectives

Related questions

Marginal cost CANNOT be calculated as:A) TC/Q,where TC is total cost and Q is output.B) VC/Q,where VC is variable cost and Q is output.C) the slope of the total cost curve.D) ATC * Q,where ATC is average total cost and Q is output.

Definitions

Learning Objectives

Learning Objectives

Related questions

Marginal cost CANNOT be calculated as:

A) TC/Q,where TC is total cost and Q is output.
B) VC/Q,where VC is variable cost and Q is output.
C) the slope of the total cost curve.
D) ATC * Q,where ATC is average total cost and Q is output.