A firm's marginal cost is:
A)the ratio of the change in total cost to the change in the quantity of output.
B)the change in total cost divided by the change in labor input.
C)the slope of the average fixed cost curve.
D)total cost divided by output.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred by a firm to produce one more unit of output. It is calculated as the ratio of the change in total cost to the change in the quantity of output. Thus, option A is the correct definition of marginal cost.

A Firm's Marginal Cost Is