Marginal cost is the:
A) increase in total cost when one more unit of output is produced.
B) reduction in cost from economies of scale.
C) ratio of average total cost to total cost.
D) increase in output from the addition of one unit of labour.

Question

Quizplus · Accepted Answer

Marginal cost is the cost of producing one more unit of output. It is calculated by dividing the change in total cost by the change in output. Therefore, A is the correct answer as it represents the increase in total cost that occurs when one more unit of output is produced.

Marginal Cost Is The