-Marginal cost and total cost are equal for:
A) the 1st unit of the activity.
B) the 2nd unit of the activity.
C) the 3rd unit of the activity.
D) all units of the activity.

Question

-Marginal cost and total cost are equal for:
A) the 1st unit of the activity. 
B) the 2nd unit of the activity. 
C) the 3rd unit of the activity. 
D) all units of the activity.

Quizplus · Accepted Answer

Marginal cost refers to the cost of producing one additional unit of a good. For the first unit of activity, the marginal cost is equal to the total cost because there are no previous units to consider, making the cost of producing that first unit the total cost at that point.

-Marginal Cost and Total Cost Are Equal For