The curve that shows the additional cost of each additional unit of output is called the _____ curve.
A)average cost
B)total cost
C)marginal product
D)marginal cost

Question

Quizplus · Accepted Answer

Marginal cost is the extra cost incurred for producing an additional unit of output. It is important for firms to understand their marginal costs as it helps in determining the optimal level of production and pricing strategy. The marginal cost curve intersects with the marginal revenue curve at the profit-maximizing output level.

The Curve That Shows the Additional Cost of Each Additional