The cost of a one-unit increase in an activity is called the
A) opportunity benefit.
B) sunk cost.
C) marginal cost.
D) marginal benefit.
E) margin.

Question

Quizplus · Accepted Answer

The cost of a one-unit increase in an activity is known as the marginal cost. This is the additional cost incurred for producing one more unit of a product or service. Options A and D refer to benefits, not costs. Option B refers to costs that have already been incurred and cannot be recovered. Option E is too general and does not specifically refer to cost.

The Cost of a One-Unit Increase in an Activity Is