The marginal cost of driving is approximately equal to the cost of operations per mile.

Question

Quizplus · Accepted Answer

Marginal cost refers to the cost of producing one additional unit or taking one additional action. In the context of driving, it refers to the additional cost incurred by driving one more mile. The cost of operations per mile includes expenses such as fuel, maintenance, and repairs, which are the additional costs incurred by driving one more mile. Therefore, the marginal cost of driving is approximately equal to the cost of operations per mile.

The Marginal Cost of Driving Is Approximately Equal to the Cost