Marginal cost is the ________ associated with undertaking an activity.
A)total cost
B)extra cost
C)opportunity cost
D)foregone cost

Question

Quizplus · Accepted Answer

Marginal cost refers to the additional cost incurred when one more unit of an activity is undertaken. Therefore, option B - extra cost, is the correct choice. Total cost refers to the overall cost incurred to produce a certain level of output, while opportunity cost and foregone cost refer to the cost of alternatives forgone in order to pursue a certain activity.

Marginal Cost Is the ________ Associated with Undertaking an Activity