Marginal cost refers to the cost of
A) switching to a new technology.
B) buying stock with loaned funds.
C) producing one extra unit of product.
D) realizing a profit.
E) motivating other firms to produce complements.

Question

Quizplus · Accepted Answer

Marginal cost refers to the cost of producing one extra unit of product. It is the additional cost incurred in producing one more unit of a good or service. Switching to a new technology, buying stock with loaned funds, realizing a profit, and motivating other firms to produce complements are not related to marginal cost.

Marginal Cost Refers to the Cost of