The change in total cost resulting from a 1-unit change in quantity is:
A) average cost.
B) average product.
C) marginal cost.
D) marginal product.

Question

Quizplus · Accepted Answer

Marginal cost is the increase in total cost that results from producing one more unit of output. It is the cost of producing an additional unit of a good or service. Therefore, the change in total cost resulting from a 1-unit change in quantity is the definition of marginal cost. Neither average cost nor average product is related to the change in cost resulting from a 1-unit change in quantity, and although marginal product is related to the change in output resulting from a 1-unit change in an input, it is not directly related to the change in cost.

The Change in Total Cost Resulting from a 1-Unit Change