Marginaalmäär

Marginaalmäär, often translated as marginal cost, is a fundamental concept in economics. It refers to the change in total cost that arises from producing one additional unit of a good or service. In simpler terms, it's the cost incurred by producing just one more item.

Calculating marginal cost involves identifying the variable costs associated with producing that extra unit. These variable costs can include direct labor, raw materials, and any other expenses that fluctuate with the level of production. Fixed costs, which remain constant regardless of output, are generally not included in the marginal cost calculation.

Understanding marginal cost is crucial for businesses making production decisions. By comparing the marginal cost of producing an additional unit with the marginal revenue (the additional revenue gained from selling that unit), a firm can determine the optimal level of output to maximize profits. If marginal revenue exceeds marginal cost, producing more is generally profitable. Conversely, if marginal cost surpasses marginal revenue, it may be more beneficial to reduce production.

The relationship between marginal cost and average total cost is also significant. Typically, the marginal cost curve intersects the average total cost curve at its lowest point. This occurs because when marginal cost is below average total cost, it pulls the average down, and when it's above, it pulls the average up. Therefore, marginal cost plays a vital role in understanding a firm's cost structure and strategic decision-making.