Marginal cost is the
A) cost of an increase in an activity.
B) total cost of an activity.
C) cost of an activity minus the benefits of the activity.
D) cost of all forgone alternatives.

Question

Quizplus · Accepted Answer

Marginal cost refers to the cost associated with producing one additional unit of a good or service. It is the cost of an increase in an activity, not the total cost, the net cost (cost minus benefits), or the cost of forgone alternatives.

Marginal Cost Is the