In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of purchasing a unit. distributing that unit. producing the next unit. producing a different unit.

Producing the next unit.

Explanation:

Marginal cost is the changes that occur from total cost of production due to the production of additional unit of a good or service. It is the additional cost incurred as result of producing extra unit of good or service.

Producers often compare the difference in the cost of producing one unit to producing the next unit because they would want to know the point at which sufficient reduction is achieved in production price in order to make profit.

Example is when a producer produces a pen say $3 which is the reason for buying the machine that produces pen. If he is able to produce another pen because a machine is place, the cost would reduce to $2 and so on. If he can produce more at a lesser price, that is when he can sell them at a price market will pay and achieve profit .

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in terms of experimental research, mcdonald’s charging different prices in the two cities relates to