Marginal Benefit And Marginal Cost in Real life

Marginal Benefit :-

  Merginal benefit is the benefit from each additional increment or unit.

Marginal Cost :-

   Marginal Cost is the cost from each additional increment or unit.

Example:-

   For example, imagine one Sunday you have go to eat burger at McDonald's and ordered one burger after that you want to order another one. Benefit of having another burger would be test and aditiaddit flavor. But the cost of having additional burger is the food costs and it may be unhealthy.
   After close thinking you realized that the Marginal Cost is higher than the Marginal Benefit. So you are happy with one burger.
  

Cost Of Production

What is Cost Of production ?

  It is important to understand the cost of production. It help in business to figure out profit of production and also helps to how many units to be produce.

Different Types of Cost :-

Fixed Cost:- Cost that Don't Change with the amount of produce.

 e.g. Salary of Manager

Variable Cost:- Cost that change with the amount of production.
   e.g. Raw material

Total Cost:- Fixed Cost + Variable Cost

Marginal Cost:- Additional cost of one additional output.

   Marginal Cost = Change in total Cost ÷ Change in output