The cost paid by the seller in producing one additional unit of output is known as the _____ cost.

Question

Quizplus · Accepted Answer

Marginal private cost refers to the cost incurred by a producer or a firm in producing one additional unit of a good or service. This cost includes all the expenses that the firm has to bear directly for the production of that extra unit, such as materials, labor, etc., without considering the external costs or benefits that might affect society.

The Cost Paid by the Seller in Producing One Additional