Marginal cost is the addition to total cost by increasing production by one unit. At the output level of 7 units, total cost increases from $3,040 to $3,250, an increase of $210.
This is the total cost of $3,250 at the output level of 7 units divided by 7 units. This is the average total cost per unit at that level. Marginal cost is the addition to total cost by increasing production by one unit.
This is the total variable cost at the output level of 7 units divided by 7 units. It could also be calculated as the amount of increase in total cost from the output level of 0 units to the output level of 7 units divided by 7 units. Marginal cost is the addition to total cost by increasing production by one unit. This answer is the addition to total cost by increasing production by 7 units.
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Auburn's marginal cost for the 7th unit is
