If a firm's marginal cost at a certain level of output is $10, the change in _______ at that level of output must also be $10.
A) total variable cost
B) average total cost
C) average variable cost
D) average fixed cost

Question

Quizplus · Accepted Answer

Marginal cost is the change in total cost that arises when the quantity produced is incremented by one unit. Therefore, the change in total variable cost for one additional unit of output must be equal to the marginal cost at that level of output. Thus, the correct choice is option A) total variable cost.

If a Firm's Marginal Cost at a Certain Level of Output