The cost of a one-unit increase in an activity
A) is called the total one-unit cost.
B) is called the marginal cost.
C) decreases as more of the activity is done.
D) is called the marginal benefit/cost.
E) is called the sunk cost.

Question

Quizplus · Accepted Answer

The cost of a one-unit increase in an activity is known as the marginal cost. This is because it represents the cost of producing one additional unit of output.

The Cost of a One-Unit Increase in an Activity