The cost of an increase in an activity is called

Question

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The cost of an increase in an activity is called the marginal cost. It refers to the additional cost incurred by producing one additional unit or engaging in one additional activity. Option A, an incentive, refers to a reward offered to encourage a particular behavior or action. Option C, opportunity cost, refers to the cost of forgoing an alternative opportunity. Option D, marginal benefit, refers to the additional benefit gained from consuming one additional unit or engaging in one additional activity.

The Cost of an Increase in an Activity Is Called