The change in cost that results from a one-unit increase in output is called the
A) average fixed cost.
B) per-unit variable cost.
C) per-unit total cost.
D) marginal cost.
E) average cost change.

Question

Quizplus · Accepted Answer

Marginal cost is the cost of producing one additional unit of output. Therefore, the change in cost resulting from a one-unit increase in output is called the marginal cost. Choice A, B, C, and E are not accurate descriptions of this concept.

The Change in Cost That Results from a One-Unit Increase