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It is the best alternative forgone. It is calculated as the increase in total cost divided by the increase in output. An example of this would be when Henry produces his third table in a week he gives up producing two book shelves. The marginal cost of the third table is two book shelves.
The relationship between marginal benefit, marginal cost and scarcity can be perceived as making decisions that provide the greatest possible return from the resources available, people and organizations must weigh the benefits and costs of using their resources to do a little more of some things and a little less of others...
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The marginal cost of the third table is two book shelves.
The relationship between marginal benefit, marginal cost and scarcity can be perceived as making decisions that provide the greatest possible return from the resources available, people and organizations must weigh the benefits and costs of using their resources to do a little more of some things and a little less of others...
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