Marginal cost is the one more unit of a good and of the good increases.
A) opportunity cost of producing; decreases as production
B) opportunity cost of producing; increases as production
C) benefit from consuming; decreases as consumption
D) benefit from consuming; increases as consumption

Question

Quizplus · Accepted Answer

Marginal cost is the cost of producing one additional unit of a good. As production increases, the marginal cost usually increases as well, due to diminishing returns of labor and other factors of production. Therefore, the opportunity cost of producing increases as production increases, which is best represented by choice B.

Marginal Cost Is the One More Unit of a Good