A firm's marginal cost is the change in its total cost divided by the change in its
A) average revenue.
B) average cost.
C) output.
D) quantity of labour.

Question

Quizplus · Accepted Answer

Marginal cost is defined as the change in total cost that arises when the quantity produced (output) is incremented by one unit. It is not directly related to average revenue, average cost, or the quantity of labor, but rather to the change in output.

A Firm's Marginal Cost Is the Change in Its Total