What is the difference between Marginal Cost and Average Cost? - ProProfs Discuss
Advertisement

What is the difference between Marginal Cost and Average Cost?

Asked by S. Barnes, Last updated: Apr 10, 2022

+ Answer
Request
Question menu
Vote up Vote down

1 Answer

Anthony Paul Bonadio

Anthony Paul Bonadio

Its kind of my job to give answers

Anthony Paul Bonadio
Anthony Paul Bonadio, Teacher, MCA, PhD, Toledo

Answered Jun 18, 2019

The average cost refers to the amount that will be spent to make sure that specific processes and items will be produced or appropriately offered to the general public. Marginal cost applies to the extra expenses that are needed to ensure that a particular unit will become available. Take note that the average price would need the amounts of the different costs then, it will be divided by the number of items that were computed.

The average cost refers to the amount that will be spent to make sure that specific processes and
That is the only time when the total average cost will become known. These things are needed in business because, without proper knowledge about these things, the company has a higher chance of incurring extra expenses that they could have avoided.

upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.