Marginal cost refers to the additional cost a firm incurs when it produces one more unit of output. It is not about the output from additional input (A), the total cost of production (C), or costs that do not change with output level (D).

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Marginal Cost Is

Question 127

Multiple Choice

Marginal cost is:

A) the additional output a firm will get by employing one additional unit of input.
B) the additional cost a firm will incur by producing one additional unit of output.
C) the total cost a firm will incur by producing a given level of output.
D) the costs that sit on the margin, that do not change regardless of the level of output.

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