How does a firm calculate marginal cost?(1 point)

Question

Responses

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 it total cost from total revenue.
By subtracting it total cost from total revenue.

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 adding up its variable costs and fixed costs.

Answer 1

A firm calculates marginal cost by dividing the change in total cost by the change in output.