The additional cost a firm will incur by producing one additional unit of output is the:

Name: The additional cost a firm will incur by producing one additional unit of output is the:
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Question

Quizplus · Accepted Answer

Marginal cost refers to the additional cost a firm incurs for producing one additional unit of output. This cost accounts for the variable costs of production, such as labor and materials, but not fixed costs, such as rent or salaries. Therefore, the correct option is C, marginal cost.

The Additional Cost a Firm Will Incur by Producing One