Define marginal cost. Explain its relations with average variable cost

1.	Define marginal cost. Explain its relations with average variable cost.
Answer» <html><body><p></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> added by producing one <a href="https://interviewquestions.tuteehub.com/tag/additional-367648" style="font-weight:bold;" target="_blank" title="Click to know more about ADDITIONAL">ADDITIONAL</a> unit of a product or <a href="https://interviewquestions.tuteehub.com/tag/service-1202537" style="font-weight:bold;" target="_blank" title="Click to know more about SERVICE">SERVICE</a>. If the average cost falls due to an increase in the output, the marginal cost is <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> than the average cost. If the average cost rises due to an increase in the output, the marginal cost is more than the average cost. Marginal cost is <a href="https://interviewquestions.tuteehub.com/tag/equal-446400" style="font-weight:bold;" target="_blank" title="Click to know more about EQUAL">EQUAL</a> to the average cost when the marginal cost is minimum.</body></html>

Define marginal cost. Explain its relations with average variable cost.