The increase in the firm's total cost as a result of employing one more unit of input a is equal to the:
A) marginal revenue product of input "a"
B) marginal product of input "a"
C) net marginal revenue of input "a"
D) marginal cost of input "a"
E) net marginal cost of input "a"

Question

Quizplus · Accepted Answer

The increase in the firm's total cost as a result of employing one more unit of input is known as marginal cost. Therefore, the correct choice is D, which is the marginal cost of input "a". The other options do not accurately describe the increase in total cost.

The Increase in the Firm's Total Cost as a Result