Marginal cost is the ________ associated with a particular increase in an activity.
A)total cost
B)additional cost
C)opportunity cost
D)forgone cost

Question

Quizplus · Accepted Answer

Marginal cost refers to the additional cost associated with producing an additional unit or increasing an activity by a certain amount. It is not the total cost, opportunity cost or forgone cost, but rather the cost of producing one more unit or unit of activity. Therefore, the best choice is B (additional cost).

Marginal Cost Is the ________ Associated with a Particular Increase