The cost incurred from the production of an additional unit of a product
A)is a marginal cost to the firm.
B)is called a loss.
C)is called opportunity cost.
D)must be zero for a firm to be efficient.

Question

Quizplus · Accepted Answer

The cost incurred from the production of an additional unit of a product is referred to as marginal cost. It is a crucial concept in microeconomic theory and helps firms determine the optimal level of production to maximize profits.

The Cost Incurred from the Production of an Additional Unit