Marginal cost for a person consuming a good or service is the:
A) cost of the alternative forgone.
B) cost per unit of the good or service consumed.
C) total cost of consuming a given amount of the good or service.
D) change in total cost from consuming an additional unit of the good or service.

Question

Quizplus · Accepted Answer

Marginal cost refers to the change in total cost that arises when the quantity produced (or consumed) is incremented by one unit. It is essentially the cost of producing one more unit of a good or service.

Marginal Cost for a Person Consuming a Good or Service