The marginal cost is the change in:

Question

Quizplus · Accepted Answer

Marginal cost is calculated as the change in total cost divided by the change in quantity, assuming that only the variable costs are affected by a change in quantity. Therefore, the correct option is the change in total variable cost as the quantity changes by one unit. Option A is incorrect because marginal cost does not relate to average variable cost. Option B is incorrect because it refers to a change in total cost for a number of units, while marginal cost is only concerned with the cost of producing one additional unit. Option D is incorrect because marginal cost is only concerned with changes in variable costs, and does not factor in fixed costs.

The Marginal Cost Is the Change In