Marginal cost is equal to
A) change in total cost divided by change in output.
B) change in total variable cost divided by change in output.
C) total variable cost divided by quantity of output.
D) Both A and B are correct.

Question

Quizplus · Accepted Answer

Both A and B are correct because marginal cost is defined as the change in total cost or total variable cost that arises when the quantity produced is incremented by one unit. Both definitions essentially describe the same concept from slightly different perspectives.

Marginal Cost Is Equal to