What is marginal cost?
A)Change in average cost when an additional unit of output is produced.
B)Additional output when total cost is increased by one dollar.
C)Additional cost of producing an additional unit of output.
D)Change in the price of inputs if a firm buys more inputs to produce an additional unit of output.

Question

Quizplus · Accepted Answer

Marginal cost refers to the additional cost incurred when producing one more unit of output. It is the change in total cost that results from producing one more unit of output, and is calculated as the change in total cost divided by the change in quantity.

What Is Marginal Cost