Marginal cost is defined as the
A)change in total cost resulting from an additional unit of output.
B)change in fixed cost resulting from an additional unit of output.
C)difference between average total cost and average variable cost.
D)cost per unit when the firm is operating at capacity.
E)cost of an additional unit of a variable factor of production.

Question

Quizplus · Accepted Answer

Marginal cost is the cost of producing one additional unit of output. It is calculated as the change in total cost resulting from the production of an additional unit of output. It takes into account both the variable and fixed costs associated with production.

Marginal Cost Is Defined as the