Marginal costs:
A) are minor, insignificant costs.
B) are associated with each additional unit produced.
C) are the costs incurred as a result of choosing one option over another.
D) are constant and do not vary according to production volume.
E) are also known as overhead.

Question

Quizplus · Accepted Answer

Marginal costs refer to the additional costs incurred for producing one more unit of a good or service. It varies with the level of production, unlike fixed costs which remain constant regardless of the volume of production.

Marginal Costs