Define marginal cost. Is it different from the concept of willingness

Define marginal cost. Is it different from the concept of willingness to accept?

What will be an ideal response?

ANSWER

Marginal cost in production refers to the extra cost incurred in producing an additional unit of a commodity. Willingness to accept is the lowest price that a firm is willing to receive to sell an additional unit. In a competitive market, marginal cost is the same as a seller’s willingness to accept. This is because the lowest price that any seller is willing to accept for an additional unit will equal the marginal cost of production of that unit. If he asks for a higher price, he will lose almost all of his buyers, and if he asks for a lower price, his cost of producing an additional unit will exceed the revenue he makes from selling it.