Answer:
MC is the additional cost of producing an additional unit.
Explanation:
Marginal cost is the amount that is occurring by producing the additional units. For example, a firm produces 5 mobile phones at the cost of $200 and it produces one more unit, here its total cost reaches to produces 6 units is $220. thus, the marginal cost is $20 because it is the cost that adds up by increasing the production of 1 unit. Besides, the marginal cost is the most important factor in the decision-making process because it helps to set the price and the level of production. where the MC is equal to MR, this is the profit-maximizing condition.
