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Q.2. Define/Explain. Define Marginal Cost.

Q.2. Define/Explain

Define Marginal Cost.

Marginal cost is the additional cost incurred in the production of one more unit of a good or service.

It is derived from the variable cost of production, given that fixed costs do not change as output changes, hence no additional fixed cost is incurred in producing another unit of a good or service once production has already started