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 overheads.

Question

Quizplus · Accepted Answer

Marginal costs are the costs incurred with the production of each additional unit. As more units are produced, the marginal costs may increase due to factors such as increased demand for raw materials or the need for additional labor.

Marginal Costs