Marginal cost is the ____________ cost of producing one additional unit and marginal revenue is the_____________ revenue of selling an additional unit.
A)Incremental,Incremental
B)Total,Incremental
C)Incremental,Total
D)Total,Total

Question

Quizplus · Accepted Answer

Marginal cost refers to the additional cost incurred in producing one extra unit, i.e., the incremental cost of that unit. Similarly, marginal revenue refers to the additional revenue earned by selling one extra unit, i.e., the incremental revenue of that unit. Therefore, the best choice is A, where both are described as incremental costs and revenues, respectively.

Marginal Cost Is the ____________ Cost of Producing One Additional