Marginal cost is the cost of producing one more unit of a good. As production increases, the cost of producing each additional unit (marginal cost) also increases. Thus, choice A is the correct statement. The other options are incorrect because they refer to marginal benefit rather than marginal cost.

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Marginal Cost Is the

Question 195

Multiple Choice

Marginal cost is the

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

Correct Answer: