The additional cost associated with producing or consuming the next unit of a good or service is known as the:

Question

Quizplus · Accepted Answer

The additional cost associated with producing or consuming the next unit of a good or service is known as the marginal cost. Variable cost refers to costs that vary with the level of production, utility cost refers to the cost of using a utility service, and sunk cost refers to a cost that has already been incurred and cannot be recovered. Therefore, the best choice is B) marginal cost.

The Additional Cost Associated with Producing or Consuming the Next