As it relates to the next item, the Marginal Cost (MC) is the cost of producing it. MC(q) = TC(q 1) – TC(q) is the correct formula. Calculus can sometimes approximate this difference more easily (see ...

6. The slope of the short-run total cost curve equals the slope of the short-run variable cost curve at every output. 7. Average fixed costs are constant for all output levels. b) Calculate and graph ...