Marginal cost is equal to
A)The change in total costs divided by the change in quantity produced.
B)The change in fixed costs as more units are produced.
C)Total cost divided by quantity produced.
D)Average total cost multiplied by quantity produced.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost of producing one more unit of output. It is calculated by dividing the change in total costs by the change in quantity produced. Therefore, choice A is the correct answer. Choice B is incorrect because fixed costs do not change with changes in production levels. Choice C is incorrect because it is average cost, not marginal cost. Choice D is incorrect because it is the total cost, not marginal cost.

Marginal Cost Is Equal to