Question

explain the concept of marginal cost. how does it relate to cost? how is it found?

how does the marginal cost relate to cost?
a. marginal cost refers to the rate of change of cost.
b. cost refers to the rate of change of marginal cost.
c. marginal cost is the same as cost.

how is the marginal cost found?
a. marginal cost is the same as cost.
b. marginal cost is found by taking the derivative of cost.
c. marginal cost is found by taking the inverse of cost.

Explanation:

For the first question, marginal cost represents how total cost changes when one additional unit is produced, which is the rate of change of cost. For the second question, since marginal cost is the rate of change of the total cost function, it is calculated by taking the derivative of the cost function.

Answer:

1. How does the marginal cost relate to cost?

A. Marginal cost refers to the rate of change of cost.

1. How is the marginal cost found?

B. Marginal cost is found by taking the derivative of cost.