A firm calculates marginal cost by dividing the change in total cost by the change in output. This method assesses how much the total cost increases when producing one additional unit of output.
How does a firm calculate marginal cost?(1 point)
Responses
By dividing the change in total cost by the change in output.
By dividing the change in total cost by the change in output.
By dividing the change in output by the change in total cost.
By dividing the change in output by the change in total cost.
By subtracting its total cost from total revenue.
By subtracting its total cost from total revenue.
By adding up its variable costs and fixed costs.
1 answer
1 answer