The addition to total cost resulting from the addition of the last unit of output is the ________ cost.
A) total variable
B) average variable
C) fixed
D) implicit
E) marginal

Question

Quizplus · Accepted Answer

The additional cost resulting from the production of one more unit of output is called marginal cost. This concept is important for firms to determine the optimal level of production that maximizes profits.

The Addition to Total Cost Resulting from the Addition of the Last