Marginal Cost (MC)

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Marginal Cost (MC), often referred to as “mc cost,” represents the additional cost incurred when producing one more unit of a good or service. It is a critical concept in cost accounting, aiding businesses in decision-making regarding production levels and pricing strategies. By analyzing mc cost, firms can determine the most cost-effective production quantity, optimizing profitability. Understanding marginal cost is essential for efficient resource allocation and competitive pricing.

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