The cost of a one-unit increase in an activity
A) is called the total one-unit cost.
B) is called the marginal cost.
C) decreases as more of the activity is done.
D) is called the marginal benefit/cost.
E) is called the unit cost.

Question

Quizplus · Accepted Answer

The cost of a one-unit increase in an activity is called the marginal cost. This represents the additional cost incurred to produce or consume one more unit of the good or service.

The Cost of a One-Unit Increase in an Activity