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MCQ

**Choose the correct alternative from given options:**

Which of the following formula is correct for calculating marginal cost?

#### Options

MC

_{N}= TFC_{n}– TFC_{N – 1}MC

_{N}= AC_{N}– AC_{N – 1}MC

_{N}= AVC_{N}– AVC_{n – 1}MC

_{N}= TC_{n}– TC_{N – 1}

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#### Solution

The correct formula of calculating marginal cost is MC_{n} = TC_{n} – TC_{n – 1}.

Hence, the correct answer is option **MC _{N} = TC_{n} – TC_{N – 1}**.

Concept: Cost - Marginal Cost

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