Marginal cost tells us the:
A)amount total cost rises when price rises by one unit
B)amount fixed cost rises when price rises by one unit
C)amount total cost rises when output rises by one unit
D)amount fixed cost rises when output rises by one unit

Question

Quizplus · Accepted Answer

Marginal cost is the change in total cost when output increases by one unit. It is calculated by dividing the change in total cost by the change in output. Therefore, the correct choice is (C) amount total cost rises when output rises by one unit.

Marginal Cost Tells Us The