A company could produce 100 units of a good for $320 or produce 101 units of the same good for $324. The $4 difference in costs is
A) the marginal benefit of producing the 101st unit.
B) the marginal cost of producing the 101st unit.
C) both the marginal benefit and the marginal cost of producing the 101st unit.
D) neither the marginal benefit nor the marginal cost of producing the 101st unit.

Question

Quizplus · Accepted Answer

The marginal cost is the additional cost incurred from producing one more unit, which in this case is $4 for the 101st unit.

A Company Could Produce 100 Units of a Good for $320