Marginal cost can be directly derived from Total Variable Cost.

Explanation:

Definition of Marginal Cost:

Marginal cost is the cost incurred by producing one additional unit of a product or service. In other words, it is the cost of producing one more unit of output.

Formula for Marginal Cost:

Marginal Cost (MC) = Change in Total Cost / Change in Quantity

Deriving Marginal Cost from Total Variable Cost:

Total Variable Cost (TVC) is the total cost of all inputs that vary with the level of output, such as raw materials, labor, and energy. Since Marginal Cost is the cost of producing one more unit of output, it is directly related to the change in Total Variable Cost. Therefore, Marginal Cost can be directly derived from Total Variable Cost by calculating the change in Total Variable Cost for producing one more unit of output.

Example:

Suppose a company produces 100 units of a product at a total variable cost of $500 and produces 101 units at a total variable cost of $530. The Marginal Cost of producing one more unit of output can be calculated as follows:

Marginal Cost = (Change in Total Variable Cost) / (Change in Quantity)
Marginal Cost = ($530 - $500) / (101 - 100)
Marginal Cost = $30

Conclusion:

In conclusion, Marginal Cost can be directly derived from Total Variable Cost by calculating the change in Total Variable Cost for producing one more unit of output. It is an important concept in economics and helps businesses make pricing and production decisions.