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Top 10 facts about the world. Marginal cost and total cost are related in terms of the cost of production for manufacturing companies or service providers. Fixed costs and marginal variation in cost are both considered when determining the total cost, so total costs encompass marginal costs. The average total cost will generally decrease to a minimum before increasing, forming a U-shape.
Marginal cost. Marginal cost is the derivative of the cost function, so take the derivative and evaluate it at x = 100. Thus, the marginal cost at x = 100 is $15 â this is the approximate cost of producing the 101st widget.