Different between AC MC and TC

Average cost is the total cost divided by the number of goods produced. Marginal 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. Purpose Purpose of average cost is to assess the impact on total unit cost due to changes in the output level. Purpose of marginal cost is to evaluate whether it is beneficial to produce an additional unit/small number of additional units. Formula Average cost is calculated as (Average cost = Total cost/Number of units produced). Marginal cost is calculated as (Marginal cost = Change in total cost/Change in output). Comparison Criteria Average cost of two output levels are compared to calculate the change in total cost per unit. Marginal cost is compared with marginal revenue to calculate the impact of a decision.