Marginal cost is a good measure of
A) the social value of a marginal unit of a good.
B) the least costly way to produce all units of a good.
C) what society gives up by using resources to produce more of a good or service.
D) what society gains by using resources to produce more of a good or service.

Question

Quizplus · Accepted Answer

Marginal cost reflects the additional cost incurred by producing one more unit of a good or service, essentially representing what society must give up in terms of resources (like labor, materials, etc.) to produce that additional unit. This concept is crucial in understanding the trade-offs involved in allocating resources for production.

Marginal Cost Is a Good Measure of