Which of the following best describes marginal cost?
A)The per-unit-of-output cost for a product
B)The incremental cost of producing one more unit of output.
C)A cost invariant to the firm's output
D)The sum of all costs associate with the production of a product
E)The cost of fixed items such as general and administrative expenses

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred when producing an extra unit of output. It is calculated by dividing the change in total cost by the change in output. Marginal cost helps firms make decisions on how much output to produce in order to maximize profits.

Which of the Following Best Describes Marginal Cost