For a firm that produces several products,the marginal cost of producing one product often depends on
A) The level of demand for other products
B) The production level of other products
C) The price of other products
D) The quality of other products

Question

Quizplus · Accepted Answer

The marginal cost of producing one product often depends on the production level of other products because the firm's overall costs, such as overhead and raw material costs, are spread across all the products produced. Therefore, producing more of one product may result in economies of scale and lower marginal costs for that product, while producing less of another product may lead to higher marginal costs for that product. Demand, price, and quality of other products may also have an indirect impact on the marginal cost, but they are not directly related to the production level.

For a Firm That Produces Several Products,the Marginal Cost of Producing