Editing Opportunity cost (section)

===Marginal cost===
{{see also|Marginal cost}}
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The concept of marginal cost in economics is the incremental cost of each new product produced for the entire product line. For example, if you build a plane, it costs a lot of money, but when you build the 100th plane, the cost will be much lower. When building a new aircraft, the materials used may be more useful, so make as many aircraft as possible from as few materials as possible to increase the margin of profit. Marginal cost is abbreviated MC or MPC.

Marginal cost: The increase in cost caused by an additional unit of production is called marginal cost. By definition, marginal cost (MC) is equal to the change in total cost (△TC) divided by the corresponding change in output (△Q): MC(Q) = △TC(Q)/△Q or, taking the limit as △Q goes to zero,

MC(Q) = lim(△Q→0) △TC(Q)/△Q = dTC/dQ.

In theory marginal costs represent the increase in total costs (which include both constant and variable costs) as output increases by 1 unit.