For a passenger railroad company, the cost incurred to sell an additional ticket for a seat in a train is an example of:
A)variable cost
B)semi-variable cost
C)fixed cost
D)marginal cost
E)none of the above

Question

Quizplus · Accepted Answer

The cost incurred to sell an additional ticket for a seat in a train is an example of marginal cost, which is the cost of producing one additional unit. It is not a fixed cost because it varies with the number of tickets sold, and it is not a semi-variable cost because it is not partially fixed and partially variable.

For a Passenger Railroad Company, the Cost Incurred to Sell