Lesson 2
Lesson 2
Task:
Complete the total costs
column.
AVC = VC/Q
AFC = FC/Q
For example, if it costs £100 to produce 10 units and costs £105 units to produce 11
units. The marginal cost of the 11th unit is…
£5
If it costs £4 to produce 2 units but £10 to produce 3 items, then the marginal cost of
the 3rd unit is..
£6
Marginal cost MC =
(MC) ΔTC/ΔQ