The incremental cost of building the next unit of a good is called the:
A) Law of One Price.
B) variable cost.
C) marginal cost.
D) fixed cost.

Question

Quizplus · Accepted Answer

The incremental cost of building the next unit of a good is known as the marginal cost. Variable costs include all costs that vary with the output level, while fixed costs are expenses that are constant regardless of the quantity of goods produced or sold. The law of one price is a concept in economics that suggests that in competitive markets, the same good should have the same price in various countries when the price is expressed in the same currency.

The Incremental Cost of Building the Next Unit of a Good