Marginal cost is the
A)change in total cost that results from a change in output.
B)change in total revenue that results from a change in output.
C)change in fixed cost that results from a change in output.
D)total cost of the product divided by the number of units being produced.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred in producing an extra unit of output. It is calculated as the change in total cost divided by the change in output. Therefore, A is the correct choice as it defines marginal cost as the change in total cost resulting from a change in output.

Marginal Cost Is the