the margin of profit. Marginal cost is abbreviated MC or MPC.

The increase in cost caused by an additional unit of production is called marginal cost. By definition, marginal cost (MC) is equal to the change in total cost (?TC) divided by the corresponding change in output (?Q): MC(Q) = ?TC(Q)/?Q or, taking the limit as ?Q goes to zero,

MC(Q) = lim(?Q->0) ?TC(Q)/?Q = dTC/dQ.

In theory marginal costs represent the increase in total costs (which include both constant and variable costs) as output increases by 1 unit.

Adjustment cost

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