What is the cost of producing an additional unit of output
A)the firm's marginal cost
B)the firm's marginal product
C)the firm's variable cost
D)the firm's average variable cost

Question

Quizplus · Accepted Answer

The cost of producing an additional unit of output is called the firm's marginal cost. This is because it represents the increase in total cost that results from producing one more unit of output. It is important for firms to understand their marginal cost so that they can determine the optimal level of output to produce and set prices accordingly.

What Is the Cost of Producing an Additional Unit of Output