The additional cost resulting from a small increase in some activity is called the
A) opportunity cost.
B) marginal benefit.
C) marginal cost.
D) diminishing returns of the activity.

Question

Quizplus · Accepted Answer

The additional cost resulting from a small increase in some activity is referred to as marginal cost. Marginal cost is the cost incurred by producing one more unit of a good or service. It is important for firms to consider marginal costs when determining the optimal level of production.

The Additional Cost Resulting from a Small Increase in Some