Marginal cost is
A)the increase in total cost from producing one more unit of output
B)total variable cost per unit of output
C)fixed cost per marginal unit
D)average total cost divided by the quantity of inputs used
E)total cost per unit of output

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred when one more unit is produced. It is the increase in the total cost from producing one more unit of output. Therefore, Option A is the correct choice. Option B is the definition of average variable cost, Option C is a misconstruction, Option D is the definition of average cost, and Option E is the definition of total cost.

Marginal Cost Is