# How to interpret Marginal Cost values? [closed]

The Marginal Cost (MC) of an additional unit of output is the cost of the additional inputs needed to produce that output. Here is one of the formulas for calculating marginal cost:

$\ MC=\Delta CF\div\Delta output$

For example, suppose it costs €1600 to produce 100 units and €2300 to produce 200 units. MC = €7

What does it mean to have the marginal cost equal to 7?

• "The Marginal Cost (MC) of an additional unit of output is the cost of the additional inputs needed to produce that output." Dec 27 '15 at 22:40