In a factory production environment, the additional cost of producing one more item is known as:________

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06-09-2022
Social Studies

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In a factory production environment, the additional cost of producing one more item is known as:________

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Tutorconsortium322 Tutorconsortium322 · Answer 1 · 2022-09-08T08:03:58-04:00

In a factory production environment, the additional cost of producing one more item is known as Marginal cost.

What is Marginal cost?

In economics, the difference in total cost caused by increasing the quantity produced is known as the marginal cost, sometimes known as the cost of producing more.
The additional cost paid in the creation of extra units of goods or services is known as marginal cost, and it is most typically employed in manufacturing.
It is formed from both variable costs that must still be considered and fixed expenses for things that have already been created.
It is calculated by dividing the cost change by the quantity change. For instance, it might cost $10 to make ten cups of coffee.
Another would cost $0.80 to produce. That is therefore the marginal cost, or the additional cost incurred to produce one more unit of output.

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What is Marginal cost?

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