The incremental cost of building the next unit of a good is called the:
A)demand curve.
B)variable cost.
C)marginal cost.
D)fixed cost.

Question

Quizplus · Accepted Answer

Marginal cost refers to the additional cost required to produce the next unit of a good or service. It is different from fixed costs, which do not vary with changes in production, and variable costs, which increase with production but do not necessarily represent the cost of producing an additional unit. The marginal cost is important in determining the optimal level of production and pricing decisions. Therefore, option C is the correct choice.

The Incremental Cost of Building the Next Unit of a Good