International Journal of Tax Economics and Management

Marginal Cost & its Variation in Different Economy Scales

Author: Antônio Souza Araujo | Published on: 28 February, 2019   Page: 29-34

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Abstract
In economics, marginal cost is the change in the total cost that arises when the quantity produced is incremented by one unit; that is, it is the cost of producing one more unit of a good. Intuitively, marginal cost at each level of production includes the cost of any additional inputs required to produce the next unit. At each level of production and time period being considered, marginal costs include all costs that vary with the level of production, whereas other costs that do not vary with production are fixed and thus have no marginal cost. For example, the marginal cost of producing an automobile will generally include the costs of labor and parts needed for the additional automobile and not the fixed costs of the factory that have already been incurred. In practice, marginal analysis is segregated into short and long-run cases, so that, over the long run, all costs (including fixed costs) become marginal.

Keywords
Marginal Cost; Variations; Cost Functions; Negative and Positive Externalities of Cost.

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Araujo, A., S (2019), Marginal Cost & its Variation in Different Economy Scales. International Journal of Tax Economics and Management, 2(6), 29-34.

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    Araujo, A., S (2019) "Marginal Cost & its Variation in Different Economy Scales", International Journal of Tax Economics and Management, 2(6), pp.29-34.

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    Araujo, A., S. Marginal Cost & its Variation in Different Economy Scales. International Journal of Tax Economics and Management. 2019; 2(6): 29-34.

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    Araujo, A., S. Marginal Cost & its Variation in Different Economy Scales. International Journal of Tax Economics and Management. 2019; 2(6): 29-34.

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    Araujo, A., S. Marginal Cost & its Variation in Different Economy Scales. International Journal of Tax Economics and Management. 2019; 2(6): 29-34.

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  • Reference

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    [This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).]

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    Author Details


    Antônio Souza Araujo
    Department of Economic Sciences
    São Judas Tadeu University
    antonioaraujo@hotmail.com