Marginal cost indicates how much total cost increases if one more unit is produced or how much total cost drops if production declines by one unit.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred in producing one more unit of a good. Therefore, it indicates how much total cost increases if one more unit is produced (or how much it decreases if production declines).

Marginal Cost Indicates How Much Total Cost Increases If One