Marginal cost is the _______ one more unit of a good and _______ of the good increases.
A) price that must be paid to consume; decreases as consumption
B) price that must be paid to consume; increases as consumption
C) opportunity cost of producing; decreases as production
D) opportunity cost of producing; increases as production

Question

Quizplus · Accepted Answer

Marginal cost refers to the cost of producing one additional unit of a good. It typically increases as production increases due to factors like the law of diminishing returns, where additional production requires increasingly more costly inputs.

Marginal Cost Is the _______ One More Unit of a Good