Marginal cost is the ________ one more unit of a good and ________ of the good increases.
A) opportunity cost of producing; increases as production
B) opportunity cost of producing; decreases as production
C) price that must be paid to consume; increases as consumption
D) price that must be paid to consume; decreases as consumption

Question

Quizplus · Accepted Answer

Marginal cost refers to the cost of producing one additional unit of a good. It typically increases as production increases due to the law of diminishing returns, which states that adding more of one factor of production, while holding all others constant, will at some point yield lower per-unit returns.

Marginal Cost Is the ________ One More Unit of a Good