The extra cost that results from an extra unit of an activity is the
A) marginal benefit.
B) marginal surplus.
C) marginal cost.
D) reservation cost.
E) same as the opportunity cost.

Question

Quizplus · Accepted Answer

The extra cost that results from an extra unit of an activity is referred to as the marginal cost. It is the cost of producing one additional unit of a good or service. Understanding the marginal cost is important for firms to make optimal production decisions and for consumers to make rational consumption choices.

The Extra Cost That Results from an Extra Unit of an Activity