Marginal cost differs significantly from other cost metrics, such as average cost and fixed cost. While fixed costs remain constant regardless of production volume (like rent, overhead ...

as it is below the average total cost curve. The difference in total cost between two levels of output is divided by the difference in output to arrive at the marginal cost (MC). Total cost divided by ...

3. The marginal product of input 1 derived from the production function y=min[az 1, bz 2], diminishes for increases in input 1. 4. If the average product is declining, then average total cost must be ...

MC(q)=TC′(q) is another definition of the marginal cost according to some sources. Taking the total cost and dividing by the total number of units produced, you can easily find the average cost.

The cost of capital is used primarily to make decisions which involve raising new capital. So, focus on todayís marginal costs (for WACC).