Marginal cost refers to the costs of:
A) switching to a new technology.
B) adhering to technical standards.
C) producing one extra unit of product.
D) product promotions.
E) licensing new technology.

Question

Quizplus · Accepted Answer

Marginal cost refers to the additional cost incurred when producing one extra unit of product. This includes the cost of additional raw materials used, additional labor required, and any additional overhead costs associated with producing the extra unit. It does not relate to switching to new technology, adhering to technical standards, product promotions, or licensing new technology.

Marginal Cost Refers to the Costs Of