A firm's marginal cost is:
A) the ratio of the change in total cost to the change in the quantity of output.
B) the change in total cost divided by the change in labor input.
C) the slope of the average fixed cost curve.
D) all of the above.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred by producing one more unit of output. It is calculated by dividing the change in total cost by the change in quantity of output. Therefore, option A is the correct choice. Option B refers to the marginal cost of labor, which is different from the firm's total marginal cost. Option C is incorrect because the slope of the average fixed cost curve is negative, while the marginal cost curve slopes upward.

A Firm's Marginal Cost Is