Marginal cost is the opportunity cost of producing
A) every unit possible.
B) zero units.
C) the first unit and only the first unit.
D) one more unit of a good or service.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred in producing one more unit of a good or service, so the correct choice is D. The other choices are incorrect because marginal cost applies to each additional unit produced, not to every unit produced (A), zero units (B), or only the first unit (C).

Marginal Cost Is the Opportunity Cost of Producing