Marginal cost is the cost of producing one more unit of a good or service, which includes both variable costs (costs that vary with the level of output) and a portion of fixed costs (costs that remain constant regardless of output). Therefore, it is best described as the addition to cost associated with one additional unit of output.

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Marginal Cost Is

Question 27

Multiple Choice

Marginal Cost is

A) the addition to cost associated with one additional unit of output.
B) the per unit cost of production.
C) the per unit variable cost of production.
D) the per unit fixed cost of production.

Correct Answer: