Incremental cost is the same concept as ________ cost.
A) average
B) marginal
C) fixed
D) variable

Question

Quizplus · Accepted Answer

Incremental cost refers to the additional cost incurred for producing one more unit of output or for taking one more action. This is the same concept as marginal cost, which is the additional cost incurred for producing one more unit of output. Average cost is the total cost divided by the total output and does not necessarily change with each additional unit produced. Fixed cost remains the same regardless of the level of output, while variable cost changes with the level of output but is not necessarily the same as incremental cost. Therefore, the best choice is B, marginal cost.

Incremental Cost Is the Same Concept as ________ Cost