Answered

Which is the first step in marginal analysis?

A. Determine what price the company wishes to charge for its products.
B. Identify fixed and variable costs for specified quantities of product.
C. Find the marginal cost of producing one additional unit of a product.
D. Calculate the marginal revenue of producing one additional unit of a product.



Answer :

GinnyAnswer

Final answer:

The first step in marginal analysis involves defining marginal cost as the change in total cost from producing a small amount of additional output.


Explanation:

Step 1: Define marginal cost as the change in total cost from producing a small amount of additional output.

Step 2: Identify the change in total cost or variable cost for producing one more unit of a product.

Step 3: Calculate the marginal cost by dividing the change in total cost by the change in quantity.


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