The cost to a firm of producing one more unit of output
A)usually exceeds the firm's price.
B)is significantly less than the firm's price for purely competitive firms operating in long-run equilibrium.
C)usually equals the firm's price for monopolistically competitive firms.
D)is the firm's marginal cost.

Question

Quizplus · Accepted Answer

The cost to a firm of producing one more unit of output is its marginal cost, which is the additional cost incurred by the firm for producing an additional unit of output. Therefore, the correct answer is option D.

The Cost to a Firm of Producing One More Unit