The marginal cost of an activity is the:

Question

Quizplus · Accepted Answer

The marginal cost of an activity is defined as the change in the cost of an activity resulting from an extra unit of the activity. It measures the increase in total cost when the level of output or activity increases by one unit, holding all other factors constant. Therefore, option A is the correct choice. Option B is incorrect because total cost refers to the cost of producing all units of the activity. Option C is incorrect because it is the average cost per unit of the activity. Option D is incorrect because it doesn't make sense to divide change in level of activity by the change in cost of activity.

The Marginal Cost of an Activity Is The