The change in a firm's total cost from producing one more unit of a good or service is the firm's

Question

Quizplus · Accepted Answer

The change in a firm's total cost from producing one more unit of a good or service is called the marginal cost, which is the cost of producing an additional unit of output. Therefore, the correct option is B, the marginal cost of production. The explicit cost of production refers to the actual expenses incurred by the firm, while the implicit cost refers to the opportunity cost of the resources used in production. The average cost of production is the total cost divided by the number of units produced, and it gives an idea about the total cost per unit of output produced.

The Change in a Firm's Total Cost from Producing One