The change in a firm's total cost from producing one more unit of a good or service is
A)the result of economies of scale.
B)the definition of marginal product
C)the definition of marginal cost.
D)impossible to observe in large firms with many manufacturing plants.

Question

Quizplus · Accepted Answer

The change in a firm's total cost from producing one more unit of a good or service is defined as the marginal cost. It represents the additional cost incurred by the firm to produce one more unit of output. The other options, such as economies of scale and marginal product, are related to the factors affecting the level of production and have different definitions. The fourth option is incorrect as the size of a firm or the number of manufacturing plants does not affect the concept of marginal cost.

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