Rewrite the statement into equivalent statement without using the term marginal. At a production level of 500 units, marginal cost is $17 per unit.
A) At a production level of 500 units, cost is increasing by $17 per unit.
B) At a production level of 500 units, cost is decreasing by $17 per unit.
C) At a production level of 500 units, cost is $17 per unit.
D) At a production level of 500 units, cost is increasing by $17 units.
E) At a production level of 500 units, cost is decreasing by $17 units.

Question

Quizplus · Accepted Answer

Marginal cost refers to the increase in total cost when one additional unit is produced. Therefore, stating that cost is increasing by $17 per unit at a production level of 500 units is equivalent to saying the marginal cost is $17 per unit.

Rewrite the Statement into Equivalent Statement Without Using the Term