Marginal cost is equal to
A)the increase in total cost from increasing the amount of labor by one unit.
B)the increase in variable cost from increasing the amount of labor by one unit.
C)Both A and B.
D)Neither A nor B.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred by producing one more unit of output. It involves both the increase in total cost and variable cost from increasing the input (labor) by one unit. Therefore, both choices A and B are correct, making choice C the best option.

Marginal Cost Is Equal to