The change in a firm's total cost from producing one more unit of a good or service is the firm's
A)explicit cost of production.
B)marginal cost of production.
C)average cost of production.
D)implicit cost of production.

Question

Quizplus · Accepted Answer

The change in total cost from producing one more unit of a good or service is known as marginal cost. Marginal cost is the addition to total cost resulting from the production of an additional unit. It includes both explicit costs (directly incurred costs such as labor and materials) and implicit costs (indirect or opportunity costs). Therefore, option B is the correct choice.

The Change in a Firm's Total Cost from Producing One