Shania Dolls have become a major competitor of doll companies like Mattel. When the company produces 1,500 dolls, it incurs $6,000 in costs. When it produces 1,501 dolls, the costs go up to $6,004. This $4 difference is an example of

Question

Quizplus · Accepted Answer

The $4 difference in cost between producing 1,500 and 1,501 dolls represents the marginal cost, which is the cost of producing one additional unit.

Shania Dolls Have Become a Major Competitor of Doll Companies