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What is marginal cost? Why is the supply curve referred to as a marginal cost curve?
marginal cost is the cost of one extra unit of any good. because supply curve shows the quantity supplied of any good on different prices it shows the cost of that extra unit that is why supply curve called as marginal cost curve.
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Okay, So the question asked about what is marginal cost to the definition of marginal pa say that marginal cost is additional mountain money or additional cost of producing one more about good or service for the firm. Okay, so let's think the production of that talk. Yeah, let's say if the firm like to put produced 10 laptops. The total cost is maybe in Levis Elgin. Often, Soldier and the firm like to produce 11 laptops, and the total cost is in love and the marginal cost off producing the ladder's laptop be one Celtic. So that's a definite motion off marginal cost. So why we know that the module causes connected the supply care or the question? I ask, why the supply curve It worked at the Marshall Oscar. So sink about a definition off supply. Kurt Supply cur basically matters at a human specific price. Mrs. Price, this is HQ wanted to at a given specific price. What the amount of food firm like to supply right? That's the definition of supply, Kurt. Okay, let's think about why the firm like a supply when the firm like the support. Only if the price of that amount of girls can cover the marginal cost are producing, right? So that's a reason why margin Costco is exactly the supply curve ball, okay?
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