Different between AC MC and TC

1.	Different between AC MC and TC
Answer» Average cost is the total cost divided by the number of goods produced.\tMarginal cost is the rise in cost as a result of a marginal (small) change in the production of goods or an additional unit of output.PurposePurpose of average cost is to assess the impact on total unit cost due to changes in the output level.\tPurpose of marginal cost is to evaluate whether it is beneficial to produce an additional unit/small number of additional units.FormulaAverage cost is calculated as (Average cost = Total cost/Number of units produced).\tMarginal cost is calculated as (Marginal cost = Change in total cost/Change in output). Comparison CriteriaAverage cost of two output levels are compared to calculate the change in total cost per unit.\tMarginal cost is compared with marginal revenue to calculate the impact of a decision.

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