If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur
A) more fixed costs.
B) higher average fixed costs.
C) fewer variable costs.
D) a marginal cost.
E) higher average variable costs.

Question

Quizplus · Accepted Answer

The additional cost incurred by producing one more unit is known as marginal cost. So, if the firm decides to produce 2,501 products per month, it will incur a marginal cost.

If a Firm Currently Produces 2,500 Products Per Month and Decides