Marginal cost is:
A) the change in total cost from producing one more unit of output.
B) total cost divided by the change in total output.
C) the change in total output divided by the change in total cost.
D) average cost times output.

Question

Quizplus · Accepted Answer

Marginal cost measures the cost of producing one additional unit of a good or service. It is calculated as the change in total cost divided by the change in quantity produced, and represents the additional cost of producing one more unit, after all fixed costs have been accounted for. Option A is the only choice that accurately describes this definition.

Marginal Cost Is