Which of the following defines marginal cost?
A) It is the cost of an alternative that must be forgone in order to pursue a certain action.
B) It is the cost of producing an additional unit of output.
C) It is the cost that is independent of the level of goods or services produced by the business.
D) It is the cost that has already been incurred and cannot be recovered.
E) It is the cost incurred in making an economic exchange.

Question

Quizplus · Accepted Answer

Marginal cost is the cost of producing an additional unit of output. It is the increase in total cost that arises when the quantity produced increases by one unit. This is an important concept in economics as it helps businesses determine the optimal level of production and pricing for their goods and services.

Which of the Following Defines Marginal Cost